Gold price up over 1%, closing in on new record
Bullion is now 18% higher for the year, boosted by anticipation of Fed loosening as well as significant buying by central banks.
Taseko Mines Ltd. (TGB) has bought put options to hedge its 2011 copper production, signalling that miners, too, are worried about commodity prices.
Taseko chief executive officer Russell Hallbauer noted that while copper prices have averaged about $4.25 (U.S.) per pound over the last four months, “the price has experienced extreme volatility on a day over day, and week over week basis.” By purchasing put options that protect against falling prices, Taseko can guarantee that it will receive a minimum of $3.61 per pound.
