Gold Dehedging Persists in Q4 '07, More Expected in '08

Source:

The Fortis hedging and financial gold report (produced for Foris Bank by the VM Group) said the fourth quarter decline in the delta-adjusted hedge book was the 23rd consecutive quarterly decline. It took global gold hedging to 74% below its third quarter 2001 peak of 102.8m ounces.

The global gold hedge book fell again by 2.3m ounces in fourth quarter 2007, bringing total hedged gold to only 26.8m ounces.

The Fortis hedging and financial gold report (produced for the Fortis Bank by the VM Group) said between 6m ounces to 8m ounces of dehedging was expected in 2008, taking global hedging to 20m ounces or lower. The vast majority of hedged ounces would be held by AngloGold Ashanti and Barrick.

The report said the fourth quarter decline in the delta-adjusted hedge book was the 23rd consecutive quarterly decline. It took global gold hedging to 74% below its third quarter 2001 peak of 102.8m ounces.

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