SOURCE: The Bedford Report

The Bedford Report

February 21, 2011 08:46 ET

Could Hedging Return to the Gold Market?

The Bedford Report Provides Analyst Research on Yamana Gold & Newmont Mining

NEW YORK, NY--(Marketwire - February 21, 2011) -  After a volatile month of January, Gold has been on the upswing this month as Middle Eastern unrest has spurred demand for the yellow metal. In unpredictable moments, investors traditionally take haven in precious metal markets to avoid currency fluctuations. This earnings season, gold miners have posted tremendous profits as a result of the uptick in gold prices. The Bedford Report examines the outlook for the Gold Market and provides research reports on Yamana Gold, Inc. (NYSE: AUY) & Newmont Mining Corporation (NYSE: NEM). Access to the full company reports can be found at:

China has been a key factor in gold's monumental run over the last year. According to the World Gold Council, Chinese investors bought 579.5 tonnes of the metal in 2010. Analysts warn that Chinese demand could shrink going forward, however. Higher interest rates in China could hurt gold demand as it increases the opportunity cost of holding the yellow metal. In late December, China raised interest rates in an attempt to counter the fastest inflation in more than two years. China increased rates by 25 basis points to send one-year lending rates to 5.81% and the one-year deposit rate to 2.75%.

The Bedford Report releases regular market updates on the Gold Market so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

Concerns that gold's price may finally be ready to peak has led to the possibility that gold hedging may soon return. During his presentation to the Mining Indaba being held in Cape Town, Credit Suisse analyst Tom Kendall explains "the key issue is whether (mining companies) can now have a serious discussion with your shareholders about hedging." The world's major gold producers such as Newmont have closed out their hedge books over the past five years.

Hedging programs allow producers to lock in current gold prices for future production, guarding against any potential price declines in the future.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at

Contact Information