Armstrong believes that gold is NOT a hedge against inflation but rather a hedge against a loss of confidence in government. There is a difference, and Martin does a good job explaining it. He is reiterating his latest papers in stating that a loss of confidence in the government sector is coming soon if not [...]

There is a fascinating article in The Economist about how the world of derivatives has shaped up through the crisis.
I often encounter misconceptions about hedging. The one line that summarises the issue is this: The job of a hedging strategy is to combat extraneous economic exposure. Let me focus on currency exposure as an example, [...]

This article by Ambrose Evans-Pritchard in the London Telegraph has got a lot of runs in the past few days. This statement in it caught my eye
Low real interest rates have caused the process [mine hedging] to reverse, creating a shortfall of about 500 tonnes. The process accelerates as rates turn negative, leading to a [...]