Monday, November 13, 2017

World's largest hedge fund jumps into gold market after telling investors to do so if things went bad

Back in August the CEO of the world's largest hedge fund told investors it might be time to buy some gold, especially if things started to get worse financially.  And ever since that time Ray Dalio has been buying the GLD while prices have been sitting at an extreme value.

Back on August 10 Ray Dalio urged investors to buy gold in case "things go badly." This is what Dalio said: 
When it comes to assessing political matters (especially global geopolitics like the North Korea matter), we are very humble. We know that we don't have a unique insight that we'd choose to bet on. We can also say that if the above things go badly, it would seem that gold (more than other safe haven assets like the dollar, yen and treasuries) would benefit, so if you don't have 5-10% of your assets in gold as a hedge, we'd suggest you relook at this. Don't let traditional biases, rather than an excellent analysis, stand in the way of you doing this. 
And that's also what he did, because in the third quarter Bridgewater was very busy buying gold: in fact, according to the just released 13F, after $3.8BN and $2.9BN positions in EM ETFs VWO and EEM, as well as a $1.3BN position in the SPY ETF, Bridgewater's 4th largest position as of September 30 was GLD, with 3.894 million shares, worth $473 million. In other words, in Q3, Ray Dalio went on a gold buying spree, increasing his GLD holdings by a whopping 575%. 
As a result of the surge in holdings, Bridgewater as of this moment, the 8th largest holder of paper gold, known as GLD. - Zerohedge

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