Zeev's Turnips Patch-No Politics (ZEEV)

[ieddyi]

Newmonts forward hedging exposure currently stands above 5 million ounces. They have stated that they plan to unwind quickly, but in actuality haven't done so. They recently made an accounting change to more realistically account for those hedged ounces. If gold does take out 330 and surges higher, their hedge books will prove toxic to the highly hedged comapanies. It has already happened to smaller producers. A price above 350 will cause a derivative absed mely up as there does not exist enough physical gold to cover the amount that has been hedged via derivatives