GREY:GRFJF - Post by User
Post by
prestedon May 23, 2008 3:00pm
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Post# 15104824
Hedged gold miners
Hedged gold minersIntersting what you say Shortusa2. Makes one wonder to what extent gold miners that have large hedges have used cash to buy back some of the forward sells. Makes sense that they might. Also, if they are, to what extent would that have an effect on (a) their share price - since it would reduce profits in the year they buy them back, and (b) the price of gold, since their buys would have an inflationary effect.
With inflation rearing it's ugly head again, it seems inevitable that gold will be in the $1,500 range within the next 24 months. So, buying pretty well any gold stock seems a no-brainer. For Canadians it seems that the expected rise in the US currency will give us a 5% pop regardless of the POG.