Gold just hit $400

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Quote from taodr:



I know Pierre, they are always selling forward.

And your evidence for that is? Newmont is not a hedger, at least not according to its audited financial statements, treatment of the Normandy hedge book, investor press releases, and membership of the Amex Gold Bugs index.

 

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Quote from TheStudent:

The fact that he is the CEO of a mining company leads me to discount whatever he is saying completely.

I think every mining CEO who has lived through $280 gold is going to be calling up JP Morgan to sell more of his production forward.

Just recently, Newmont effectively eliminated the remains of the 8 million ounce hedge book they acquired from the Normandy purchase in 2002. Newmont's annual production is just over 7 million ounces. So, not only have they not sold their bullion forward, they have done the exact opposite and *bought* more than their entire annual production.