“Hedging—a strategy used to lock in the price at which they can sell their gold in the future—is common among producers of commodities ranging from copper to natural gas seeking to protect themselves from fluctuations in the market. But it has largely fallen out of favor among gold miners after an almost uninterrupted rise in the precious metal’s price over a decade.  The world’s biggest gold producers abandoned hedging after missing much of gold’s lengthy rally. The companies cost themselves billions of dollars when they weren’t able to seize on sharply rising prices because they had committed much of their output to hedging at a substantially lower value.”

http://online.wsj.com/article/SB10000872396390444042704577587170572797032.html?mod=WSJ_latestheadlines

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