Hedge Funds Buy Gold by the Ton with ETFs
Some hedge fund managers are using ETFs to back up the truck and load up on gold.
Hedge fund skipper John Paulson holds about 66 tons of gold through an exchange traded fund as more portfolio managers and individual investors use ETFs to own the precious metal as a hedge against inflation and global debt problems.
Paulson & Co. has a $3.66 billion position in SPDR Gold Shares (NYSEArca: GLD), the largest metals ETF with nearly $75 billion in assets, Bloomberg News reports. The fund controls over 43 million ounces of gold, or about 1,342 metric tons.