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Contributed Commentaries

Effective hedging for producers

CPM Group

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CPM Group's Jeffrey Christian discusses why producers should hedge their production. He goes through some experiences in which hedges did very well, and some cases in which hedges went bad. He discusses poorly structured and managed hedging programs and well constructed and highly successful hedging programs at other companies, revealing and reviewing producer histories not broadly known in the market. He discusses some of the reasons for poorly performing hedging, and reviews the origins and history of the anti-hedging witch hunt by investors. He also talks about how CPM Group offers better options programs that protect from falling prices while allowing producers to benefit from upward price movements.

By CPM Group

Contributing to kitco.com

Contact info@cpmgroup.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.