Gold Hedging Seen by Barclays Staying Below 1990s ‘Large’ Levels
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Gold miners probably won’t return to “large-scale” selling of future output seen in the 1990s that added to supply even as the co-chairman of Barrick Gold Corp., the top producer, says hedging makes sense, Barclays Plc said.
Prices have climbed faster than costs over the past 10 years even after falling this year, curbing the incentive to hedge, the bank said in a report e-mailed today. If companies mining gold as a by-product hedged all of their output, about 250 metric tons would be added to supply, equal to about a month of global production, it said.