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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Haim R. Branisteanu who wrote (163225)10/1/2020 7:51:04 PM
From: TobagoJack  Read Replies (1) | Respond to of 217808
 
Re <<whole worldwide situation seems to be on a gunpowder keg>>

gold hinting that you are correct

In the meantime unclear how well below cited approach would work, but perhaps the way filters out unwarranted rewards to the fund managers on profit due to fiat money inflation

bloomberg.com

Quant Hedge Fund Taps Into Inflation Fears With New Gold Shares

Justina Lee
1 October 2020, 20:11 GMT+8

A $700 million Swiss hedge fund is tapping into the backlash against central-bank largesse by offering clients in its flagship systematic strategy shares that are denominated in gold.

Quantica Capital AG is launching this new share class -- priced in the shiny metal but settled in dollars -- in its managed futures fund, which rides medium-term trends across assets. The move reflects booming demand for gold amid fears that quantitative easing and rock-bottom borrowing rates will erode faith in fiat currencies.

“In a world where paper money issued by central banks is suffering from ever-increasing debt, muted economic outlook and ultra-low interest rates paired with inflation fears, a strategic investment in gold might be more attractive than ever,” Quantica founder Bruno Gmuer wrote in an emailed statement.

By putting money in the gold-denominated share class, dollar investors will have exposure to the commodity trading adviser’s trend-following strategy as well as the metal’s move against the greenback. Bullion has surged 25% this year as unprecedented monetary easing fuels bets on reflation.

Meanwhile, Quantica has seen a roughly flat performance so far this year amid whiplash moves across assets.

Investors have kept piling into gold funds this month, even as prices dip from records thanks to a rebound in the dollar.

It is not the first time this year a hedge fund has added new share classes tied to precious metals. In August, Edouard de Langlade’s EDL Capital started offering gold- and silver-denominated investments in its macro hedge fund.

“This is not very common,” said Philippe Ferreira, a cross-asset strategist at Lyxor Asset Management. “But gold gains appeal when central banks debase their currency as it is the case now with asset purchases.”

Read more: Why There’s More to Gold’s Rally Than Inflation Fears: QuickTake

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