Hedge Fund Gold

Hedge Fund Gold

Hedge Fund Managers Buy Gold

U.S. hedge fund managers are looking to protect their personal wealth from inflation by investing in gold. A survey showed that 20 out of 22 U.S. hedge fund managers surveyed have bought gold in their personal investing based on worries that the government's quantitative easing program would drive prices up.

Gold was seen as a safe haven asset during the financial crisis, as many investors considered it a less risky investment than stocks and shares.

As the economic outlook improves gold is also being bought as a hedge against inflation, which analysts say may soar as the economy recovers. A Federal Reserve report this week said the pace of the recession slowed or stabilized in most areas of the United States.

"Everyone agreed that sentiment is better than it was a few months ago, but none of the structural problems have yet been fixed. Double-digit inflation two or three years down the line is a very real possibility," Jeremy Charlesworth, chief investment officer at Moonraker said. Source

Related to: Kynikos Associates | James Chanos | Hedge Fund Notes


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