Many gold and silver mining Companies have shunned the hedging program. As a result, they have become more susceptible to a reduction in prices.

The reason behind it is the increasing concerns of the impact of expensive hedging program on growth and production of the Companies.

Chief Executive Officer of Arian Silver, a silver exploration, development and production Company, Jim Williams, disclosed that he is not in favor of these programs. He added that such programs, laid down by the banks, have resulted in the damage of many projects.

CEO of AngloGold Ashanti, Mark Cutifani, revealed that the firm is planning to hold back its hedge books at a faster pace compared to the target that it had in 2014.

Also, a junior precious metals producer revealed that his Company does not require any such services.

In another development, Liontamer has started a financial advantage of the interest in gold.

These funds have their own calculation techniques. It measures the performance of London Gold Fixing Ltd. The index will commence from zero after closing when the trust is applied.

Arian Silver is also of the view that the costs will continue to increase. Consequently, they do not require a hedging program.