From my perspective the chart below shows that Newcrest is useless as a gold-based hedge. The "hedge" approach requires an investment that tracks the price of gold. But as the chart shows, Newcrest is almost completely decoupled from the gold price. It also pays a terrible dividend so not only is it a weak hedge instrument, it's a lousy investment.
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I believe that if there's a severe, widespread economic downturn that causes stocks in general to tumble then you will see Newcrest get dragged down by its debt levels along with the rest of the market.