What’s your gold hedge?

Discussion in 'Gold' started by mmm....shiney!, Sep 21, 2019.

  1. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Just interested in hearing people’s plays on what their gold hedge is.

    Mine is USD.
     
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  2. JulieW

    JulieW Well-Known Member Silver Stacker

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    Depression.

    :D
     
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  3. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Jesus jules, a hedge is meant to guard you against depression
     
  4. JulieW

    JulieW Well-Known Member Silver Stacker

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    In that case, fine scotch.
     
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  5. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Is @JulieW the only one hedging? Or is it none of your fking biz shiney!? Or just a boring AF topic?
     
  6. Number 47

    Number 47 Well-Known Member

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    Could be a lack of understanding of the question... It's definitely a 747 for me.
     
  7. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    Not sure how USD is a gold hedge? This is my idea of a Golden Hedge/Henge:

    Golden Henge.JPG
     
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  8. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Okay.

    Gold is a currency hedge, specifically a USD one. So what are people buying to limit their losses in the event that gold prices fall?

    Gold goes generally up when the value of the USD falls. :)

    Screen Shot 2019-09-22 at 2.20.32 pm.png
     
  9. Jason1

    Jason1 Active Member

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    if they are 1kg bars, then thats my idea of retirement lol
     
  10. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    Not 1kg, only 10oz gold bars, and unfortunately I was only handling them for someone else and they went to Goldstackers.:(
     
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  11. SilverDJ

    SilverDJ Well-Known Member

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    Which to people outside the US can be a different thing entirely, because they usually don't live their lives with USD.
    The answer is always of course, "a balanced portfolio". Gold, silver, other commodities, local cash, foreign cash, shares, residential and commercial property, even collectibles.
     
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  12. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Specifically hedging is when you try to offset one risk against another.

    So what’s your gold hedge? Mine is specifically USD because of the inverse relationship between gold/USD. It’s TUSD actually.

    BTC/USD, USD/AUD, long position in a stock can be hedged with a put option, there’s others but I’m not that savvy on what’s out there eg what’s an example of an investment property hedge?

    Diversification is a smart move to protect yourself against risk, but hedging is the strategy you employ within your diversified portfolio in an attempt to manage the risk of the various sector/individual positions you’ve taken.

    Edit to add: if gold tanks tomorrow, can you profit or break even or maybe minimise your losses in your gold investment from that event or will your portfolio be down an amount that equals your loss in gold?
     
  13. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    A primary producer, say someone growing sorghum or wheat will partially hedge his harvest by entering futures contracts for a portion of his harvest over a specified period of time, gold producers do the same thing by entering into futures contracts to supply a certain number of ounces at a certain price in the future in an attempt to protect themselves from a downturn in market prices. It can backfire big time too.
     
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  14. Number 47

    Number 47 Well-Known Member

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    I was a little confused with the OP because I'm more familiar with the term hedging being used as an agreed price for a commodity set between the buyer and seller by running a Hedgebook.

    It's also done in the mining industry with metals.

    I thought you might have a killer deal going with gold.
     
  15. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Lol, nah.
     
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  16. mrsilverservice

    mrsilverservice Well-Known Member

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    A .357 Sig Sauer :D

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    The Book of Proverbs Chapter 11 verse 20

    Those who are of a perverse heart are an abomination to the Lord,but the blameless in their way are His delight :)
     
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  17. Number 47

    Number 47 Well-Known Member

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    The company I work for had 1/2 It's known copper resource hedged at a reasonable price.
    We later sold the Hedgebook (What was left of it) to help out with a cash flow issue during a difficult period when there was a shortfall of ore coming out of the pit.
    As dumb luck would have it, despite being fully exposed to the full force of market fluctuations the price of copper did well anyway.
     
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  18. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    When looking at gold stocks I avoid companies that hedge. Gold stock executives are notoriously shite at curbing capex, but they’re better at that than getting a good price when they hedge. :p:p
     
  19. Number 47

    Number 47 Well-Known Member

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    Well if I was the diversifying type, and hadn't sold and lost interest in my shares (I'll get back on the bandwagon one day)
    I'd have money on bank shares, they pay great dividends and will be the last ones to go belly up, I did get into NAB shares following the footsteps of my old man.
    When I told him I'd sold them and bought silver he looked like he was ready to disown me
    I never told him the full extent of my PM addiction:D
    Bank shares would probably be a great hedge against gold losing value, not that I think that's ever going to happen.
    If gold and silver is doing poorly, bank shares would likely to be doing well.
    When the banks fail ...
     
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  20. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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