Mon, Dec 5, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund Hinde: Precious metals ETFs should not be owned by serious professional investors

Monday, August 16, 2010
Opalesque Industry Update - Precious Metal Exchange Traded Funds (ETFs) have become a popular way to invest in gold and silver. In a presentation published on Thursday, Hinde Capital discuss many of the important issues investors should be aware of before buying these products.

Comparing the State Street managed SPDR Gold Shares trust (GLD), which is the largest precious metals ETF (market cap of almost US$50bn) with physical ownership, Hinde Capital conclude that

  • ETFs should not be owned by serious professional investors
  • ETFs offer none of the benefits of physical bullion ownership
  • ETFs are no cheaper than owning physical allocated bullion stored and insured in secure vaults
  • ETFs are not as secure as owning physical allocated bullion either via a bullion fund or an allocated bullion account
  • ETFs provide no returns above the bullion price, only the likelihood of tracking at a discount or potentially failing to track the bullion price at all
  • ETFs do not provide 24 hour liquidity, unlike the bullion market itself

Instead, Hinde recommend opening an allocated bullion account with a Swiss private bank or bullion bank excluding custodians of GLD and SLV or investing with a bullion fund.

Hinde Capital's investor presentation 'Precious Metals ETF Alchemy GLD - the new CDO in disguise?' can be downloaded from the firm's website: Source
Florian Guldner

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. Hunt for yield pushes more investors into riskier assets[more]

    From FT.com: Pension funds and insurance companies have increasingly embraced riskier assets in their hunt for higher returns over the past five years. Alternative assets such as property, infrastructure, private equity and hedge funds have been bought up by institutional investors in a world where

  3. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  4. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan

  5. Opalesque Exclusive: Ireland relaxes treatment of direct lending funds[more]

    Bailey McCann, Opalesque New York: The Irish Central Bank has relaxed its treatment of direct lending funds, according to a recently released