Friday, November 24, 2017

Precious metal asset fund swapped mining stocks for Bitcoin to then use profits to increase gold holdings

A small yet well established asset management firm that offers customers exposure to precious metals reported earlier this week that back in April they had swapped their historic investments in mining stocks to instead direct their cash into Bitcoin.

Old Mutual's Gold and Silver fund had for a long time invested clients money into precious metal based equities and securities.  But with the astronomical rise in the value of cryptocurrencies here in 2017, in April they shifted assets into Bitcoin as a means gain yield which they have traded to then move the profits into other gold assets.

A precious metals fund is investing in bitcoin to reinvest profits from the digital currency in gold assets. 
Ned Naylor-Leyland, manager of the Old Mutual Gold and Silver Fund, said it started buying bitcoin in April, and that the virtual currency serves as a better allocation than a heavy weighting toward mining stocks. 
He said that both bitcoin and gold complemented each other as assets, as the cryptocurrency was designed to be "digital gold." 
"Bitcoin's frictionless and immediate blockchain payment system resolves the criticism of gold as lacking divisibility and having problems with ease of transmission," Naylor-Leyland said in an emailed statement. - CNBC

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