Gold Miners Hedged but At Exactly the Wrong Time

Gold miners maximized their gold exposure in the bull market, but this has made some miners vulnerable to the metal’s pullback. John Bridges and Anant Inani of JPMorgan Chase & Co. (NYSE:JPM) believe gold companies have to be shaped to prosper in both up and down gold markets. This probably means that some gold equities will have to be significantly restructured in the next 6 to 12 months. They don’t see gold hedging as a “solution” to the industry’s problem, but do believe that some tactical hedging could be helpful. They hope the tool is not ignored because of prior mistakes. Even though an overdose of painkillers can be fatal,…