Gold miners return to hedging, FT reports

|By:, SA News Editor

Some gold miners (GDX, GDXJ) have returned to hedging to protect themselves against further drops in the price of the metal, several senior precious metals bankers tell FT.

Although major gold miners have yet to return to the long-shunned practice, small and medium-sized gold companies are said to have rushed to hedge in recent months.

The shift in philosophy reflects mining executives’ fear that the past month’s rebound in gold prices may be short-lived, as well as the recognition that more falls in prices could push them into losses.