AGRICULTURE

Producers of agricultural commodities are faced with commodity price and production risk over time and within a marketing year.  As price and production variability increases, producers turn to commodity risk management. One means of reducing these risks is through the use of the commodity futures exchange markets. Global Hedging assists farming businesses that work with agricultural commodities to efficiently transfer their risk in the markets at a minimum cost.

The physical delivery of commodities allows for the substituting of the commodity for the contract. It is imperative that a producer knows the cost of production when hedging a commodity.

GH keeps the cost of hedging straightforward and partners with the client to attain the preset hedging goals in the business cycle.

ENERGY

Natural Gas - Long Term Contracts

Global Hedging provides long term contracts for the supply of physical LNG and NG along with the financial hedging services necessary for the companies using gas in their manufacturing processes.  Global Hedging offers long term swaps, collars and other risk hedging mechanisms to ensure that the future price of LNG and NG will be within a preset convenient range to ensure a project’s feasibility.

Global Hedging trades Energy products in the some of the largest exchanges in the USA and the world and strives to provide the best choices for hedging structures. GH makes available a worldwide network of LNG providers for gasification projects in North and South America under the best price/quality conditions.

GH has worked in the Mergers & Acquisitions involving large LNG and NG projects giving advice to entrepreneurs seeking to invest in oil and gas business ventures. GH is ready to provide quotes and information for your company’s needs at no cost or obligation. This time is a time of opportunity for Clean Energy sources to emerge and develop.

METALS

Gold Investing

As the world financial markets move towards the restoration of the gold standard in America and across the globe, an increasing number of economists are actually advocating investing in gold as a hard asset. These are solid gold investments as opposed to paper stating some gold parity referenced value.

Global Hedging believes that hard assets are very good investments to defend and store value at the present time, we support  the restoration of the gold standard in the economy and make available gold and other metals to be physically held by our customers.  

CURRENCIES

Global Hedging fully assists our clients in their currency hedging activities. US Dollar, Swiss Franc, and Euro are widely used as reserve currencies by central banks, and more generally as stores of value by corporations and individuals around the world.

For US investors, currency exposures of international equity portfolios should be fully hedged. Exceptions are the Euro and Swiss Franc, which should be partially hedged.

Commodity producing countries such as Australia and Canada are positively correlated with world equity markets. These results suggest that investors can minimize their equity risk by not hedging their exposure to reserve currencies, and by hedging their exposure to all other currencies.

These patterns imply that international equity investors can minimize their risk by taking short positions in the Australian and Canadian dollars, Japanese Yen, and British Pound, and long positions in the US Dollar, Euro, and Swiss Franc.

INTEREST RATES

Every time interest rates go down or up in the economy, there are winners and losers, this encompasses financial institutions, corporations, individuals and every entity lending or borrowing in the credit markets.

Long-term interest rate cycles last for several years and even decades. Interest rates generally rise slowly as economy gains strength after a bottom is put in place after a significant bear market has terminated. A change in trend for a strong period of economic growth must be confirmed by numerous factors.

Global Hedging offers multiple interest rate hedging mechanisms for corporations seeking coverage against interest rate variations that impact their corporate loan results. Traditional instruments such as swaps, collars and other have been efficiently used for hedging interest rate exposure. GH designs flexible structures tailored to our corporate clients needs.

INDEXES

A Commodity Index is an index that tracks a basket of commodities systematically. The value of these indexes fluctuates based on the price of the underlying commodities. There is a wide range of indexes on the market, each of them varying by their components. Some indexes comprise 15 or more different types of commodities ranging from gold to wheat. They also vary in the way they are weighted.

Global Hedging makes available to individual and corporate investors our commodity index investing as an excellent opportunity for portfolio diversification. GH advises index investment by commodity sector, i.e. energy, metals, agricultural, etc. Multi sector index investment is most suitable for investors who do not have hedging goals or are not involved with physical commodities in their activities.