If you haven't learned it yet, 2010 reminded us that any market uncertainty is met with investors flocking to metals as a hedged-risk investment. Although it'd be highly unlikely that we'd be talking about a European debt crisis a year from now, this is the type of issue that could linger around long enough to erode confidence in the U.S. dollar and move the already inflated metal prices even higher. Molybdenum, unlike gold and silver, is trading more than 60% below its all-time high set in 2005, so it could have plenty of room to trade higher whether it's from an economic expansion or as a hedge against downside risk. Good golly, miss moly Now why Thompson Creek as opposed to the other molybdenum producers? How about tangible results! Thompson Creek is expected to see a 40% rise in revenues, according to analyst expectations in 2011. A large part of that revenue jump can be attributed to rising molybdenum prices, while its Q3 after-tax margin of 32% represented its highest levels in years. The balance sheet at Thompson Creek has been managed very prudently, which has allowed for healthy margins and the ability to make key investments in its future, such as its recent purchase of Terrane Metals
Yeah hedging is the best thing an investor can do to himself,without taking any risk we take positions in two markets and earn profits on it .Thanks for providing the information on Molydenum, iam always looking to buy commodities which are under priced , they say that fundamental analysis doesnt help these days, but i dont believe those dow jones theories at all :d
Waw! gandall has joined you for more updation on the hedging risk. Thanks, i will update with more stories.
