Gold Hedging: Up Close And Personal [View article]
Selling and rebuying is market timing itself. The hedge dampens volatility which preserves capital.
On Dec 01 09:32 PM Smarty_Pants wrote:
> I can never understand why I would want to hedge one stock with another > under the presumption they will offset each other. This is essentially > a variation on market timing because in order to take advantage of > the expected gold rally you have to know when to remove the hedge > (as gold starts a bull run). > > Why not just sell your gold stock and wait for the point where you > would otherwise remove the hedge and buy the stock back again? Is > this not equivalent to a pure hedge?
Gold Hedging: Up Close And Personal [View article]
On Dec 02 08:48 AM ArchDukeFerdinand wrote:
> The prices quoted on some of these gold stock is totally inaccurate.
>
> NG is selling for .55 cents and AGT is around .13 cents.
Gold Hedging: Up Close And Personal [View article]
On Dec 01 09:32 PM Smarty_Pants wrote:
> I can never understand why I would want to hedge one stock with another
> under the presumption they will offset each other. This is essentially
> a variation on market timing because in order to take advantage of
> the expected gold rally you have to know when to remove the hedge
> (as gold starts a bull run).
>
> Why not just sell your gold stock and wait for the point where you
> would otherwise remove the hedge and buy the stock back again? Is
> this not equivalent to a pure hedge?