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Positions in precious metals
Asked by Peter LaTona

Is anyone aware of hedge funds that take some position (no matter how small) in the physsical possession of precoius metals.




Answer By

In recent months, a growing list of hedge fund managers have built their commodities positions through the physical ownership and storage of precious metals. When applied to large quantities (at a minimum, several million dollars' worth), physically owning and storing a precious metal may be more cost-effective than simply owning the corresponding commodity-based ETF. I touched on that topic in an August blog linked below, citing one manager's example:

http://www.hedgeco.net/blogs/2009/08/17/leading-hedge-funds-making-a-case-for-gold/