Pacific Group Becomes Latest Hedge Fund Converting Assets to Physical Gold
21 January 2013
Another respected hedge fund, the Pacific Group, has decided to convert one third of its hedge-fund assets into physical gold.
The Pacific Group Ltd., which manages over a $100 million worth of assets, believes that gold will continue to rise as governments print more money to pay off debt, according to Bloomberg.
Thus, continues the trend of some of the smartest money in the world diversifying some of their holdings into physical gold.
Respected hedge fund managers and investors such as George Soros, John Paulson, Bill Gross, David Einhorn and Kyle Bass have diversified into gold – the latter two opting for the safety of allocated physical gold bars.
The Hong Kong-based asset manager plans to take delivery of $35 million worth of gold bars that can be traded on the London Bullion Market Association and other international markets, William Kaye, its founder and chief investment officer, said in a telephone interview on January 18.
It has secured vault space at Hong Kong International Airport to store the gold, he said.
Investors disillusioned with government money printing to service “insurmountable” public debt may seek alternatives to fiat currencies, Kaye said.