Gold Price Monitor Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor

GDXJ 93.98

+0.6%

Nov 21 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: tyc:> who wrote (60438)	11/2/2000 10:55:38 PM
From: goldsheet	Read Replies (1) of 116764

> Surely it is because their expenses and costs are Australian dollars. They are protecting themselves from a relative fall in the dollar that would see their costs increase relative to their revenue. Since their revenues are based on $US gold sales, it would make sense for them to either hedge gold in $US -or- do a combination of hedging gold in $AUS AND hedging the $AUS vs. $US. By only doing half, gold hedging denominated in $AUS, this leaves then open to currency fluctutations. > You see the same thing in Canadian base metal miners. They hedge against an increase in the Canadian Dollar by forward selling the US dollar. This currency hedging makes sense since cost are in $C and revenues for base metals are priced in $US. The Australian should be doing the same thing, they should also hedge the currency in addition to the metal.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next