Hong Kong-based asset manager The Pacific Group Ltd. announced plans to buy physical gold with one-third of its hedge-fund assets as traders bet on price increases due to governments issuing more money to pay debts, reports Bloomberg.
$35 million worth of gold bars, William Kaye, founder and chief investment officer, told Bloomberg in an interview. The gold — to be stored in a secured vault space at Hong Kong International Airport — will be for trade with the London Bullion Market Association and other international markets.
Kaye said, “Gold, the way we look at it, is anywhere from being undervalued to being seriously undervalued. We’re in the early stages, in our judgment, of what would likely be the world’s largest short squeeze in any instrument.”
He also noted all that’s needed for a major upward revaluation of gold is for small fraction of people to reclaim their physical gold from major banks and depositories.
The Pacific Group joins other famous fund managers in converting to gold.
Soros Fund Management, founded by George Soros, has a massive stake in the SPDR Gold Trust ETF (NYSEARCA:GLD), the biggest gold-backed exchange-traded product. Soros raised his GLD investment by 49% in the third quarter to about $215 million.
Paulson & Co., founded by John Paulson, also has huge gold holdings withabout $3.6 billion invested in GLD.
Kerry Hall | January 22, 2013 – Mining.com