Newmont Mining Corporation announced today the elimination of its entire 1.85 million ounce gold hedge position. It’s now the world’s largest unhedged gold producer. In addition to the falling U.S. dollar, rising cost of oil, and over-the-counter derivatives and sub-prime fiascos, the stage seems to be set for the price of gold to sky rocket.
But today, the price of gold fell from about $656 to $646. I had foreseen that gold might fall one last time, so I had already placed trades to sell my calls at market open this morning. I made a nice profit and will now be looking to accumulate more probably next Monday or Tuesday.
Oh, how I wish I understood the dynamics of the world of which you speak. Gloriously naive, I am.