Tue, May 5, 2015
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. SEC charges funds of hedge funds Alpha Titans, executives, and auditor for improper expense allocations[more]

    Update: Please note the important updated information at the end of the article.The Securities and Exchange Commission today announced charges against a Santa Barbara, Calif.-based hedge fund advisory firm and two executives involved in improper allocations of fund assets to pay undisclose

  2. Swiss group Pictet releases first public annual and financial reports[more]

    Benedicte Gravrand, Opalesque Geneva: Pictet Group, a Swiss private bank, has just released its first public annual report and financial report since it opened for business in Geneva in 1805. I

  3. Opalesque Exclusive: Carne establishes non-EU ManCo in Jersey[more]

    Benedicte Gravrand, Opalesque Geneva: For those managers who will not domicile their fund in the European Union (EU) and yet want to distribute it in the EU – especially the UK –, going under the wing of an AIFMD-compliant ManCo on the Channel Islands could be one of the ways to do it. Ch

  4. Opalesque TV: Aequam Capital: Asset management industry will be mainly quantitative going forward[more]

    Benedicte Gravrand, Opalesque Geneva: Before starting his boutique in 2010, Arnaud Chretien, co-founder and CIO of Aequam Capital, worked ten years as a market trader and 18 years as a quantitative and systematic fund manager for Soc

  5. Class-action lawsuit accuse hedge fund Standard General of holding American Apparel hostage[more]

    Komfie Manalo, Opalesque Asia: A shareholder class-action suit filed on Wednesday accused New York-based hedge fund Standard General of holding American Apparel hostage. It would reportedly reap huge benefits if the clothing company declared bankruptcy. Standard General is the controlling sto

 

banner