16.09.2011 - Commodities in CEFs: Compounding the volatility?
The concept of investing in commodities is oft-viewed as easier to understand than other assets: we all know what commodities are and many of us want them in some guise or other, particularly when it comes to gold, silver and precious metals. But ease of understanding doesn’t mean less risk or lower volatility. How often do we see news headlines such as 'Gold Price Reaches Record High' and then an almost-inevitable 'Gold Price Sees Sharp Drop' at a later date? Given such swings, does a specialist commodities closed-end fund bring more volatility with it than other fund structures?.............................................Full Article: Source
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