After spending years and billions eliminating their hedge books, gold producers (GDX) may need to return to their old habit - selling production forward - thanks to the metal's (GLD) sharp decline. "We think producers are under pressure to put on hedging," says SocGen's Robin Bhar. "The problem is it needs a cultural change ... Guys who used to hedge have lost their jobs." Renewed producer selling could put even more pressure on prices.
LOL. No they don't. All they have to do is mine the COMEX below actual mining costs. They are pulling hedges off faster than you can talk garbage. You bet wrong. No one is going to lock in a loss hedging.