Gold hedging loses its lustre
Unwinding of hedge books has become de rigueur among gold producers. Why are they eschewing derivatives and where does this leave the dealers? Navroz Patel reports
Barrick Gold’s ousting of chief executive and president Randall Oliphant last month has a significance that extends far beyond the confines of the Canadian gold producer’s boardroom, or even the lively investor debate surrounding gold producer hedging. For more than a decade, Barrick was regarded among its peers as the archetypal hedger. So with Oliphant – architect and arch-proponent of one of the industry’s largest and most sophisticated gold hedging programmes – dispatched, hedging among gold
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