George Gero, precious metals strategist at RBC Capital Markets, agrees that a merger between Barrick and Newmont would be good for gold. But he says that's a function of Barrick's and Newmont's different hedging strategies. Gero points out that Barrick hedges its gold through fixed income sales contracts, while Newmont does not. But instead of hedging fully, some miners use options to partially hedge gold exposure, and all of this bearish options action (selling calls and buying puts) hurts gold prices, he said.