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Gold de-hedging: one year later

About 1 year ago, I posted an article titled Gold de-hedging and the short term effect on gold’s dollar value. I was watching the dehedging phenomenon with gold in 2006, which was a very coordinated and systematic process over 2006. It continued into the first quarter of 2007, and started accelerating since then. I’m writing this article specifically because we hit #2 on Google for “Gold Investment” and #2 on Google for “Gold De-hedging” and I am getting a bunch of emails requesting information.

A year later, we now have top news regarding increased gold de-hedging, with the gold hedge book at its lowest level since 1992. In the third quarter of 2007 we saw a markable increase, one that is not expected to slow as the fourth quarter hits.

According to my information, the gold de-hedgers chopped almost 15% of their hedges in the second quarter alone. Some of the largest gold hedges are completely de-hedging all their positions by year’s end (I believe as much as 40% of hedges will be gone).

Read the rest of this article at the gold investment site.