GREY:LACHF - Post by User
Comment by
RedHorizonon Mar 04, 2009 12:36pm
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Post# 15819951
RE: LMA call to hedge
RE: LMA call to hedgeI agree. Look, LMA is a relatively high cost producer, to guarantee that they will sell 1/3 of their production at a minimum of $772 US is a risk-reducing move. If it's deflation that persists for 2 years before the eventual hyperinflation then LMA is protected.
This protection comes at almost no cost also. That 34% of production in 2009 can go up to about $1150 before they are even impacted. So what is there to worry about? Do you think gold is going to $2000 in 2009? Another thing to be aware of is that there is no hedge for 2010.