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View Full Version : New Goldbugs Making Gold Investments Go Mainstream - MarketWatch



silversurfer1
23rd November 2009, 07:14
Good article here....I have highlighted below an important quote from this article.

Hayman Advisors, a Dallas, Tex.-based hedge fund firm run by Kyle Bass, became another proponent of holding physical gold this year.

Most precious-metal investing has historically been done via paper futures contracts on COMEX, part of the New York Mercantile Exchange, owned by CME Group /quotes/comstock/15*!cme/quotes/nls/cme (CME (http://www.marketwatch.com/investing/stock/CME) 322.99, +1.02, +0.32%).

However, Hayman expects more demand for physical delivery of precious metals. That could cause problems because there are only enough inventories in COMEX warehouses to supply 15% to 30% of open interest on futures and options contracts, the firm explained in a presentation to investors earlier this year.

"It is prudent to focus efforts on obtaining physical delivery of metals backing paper contracts 'while supplies last,' Hayman wrote in its presentation, a copy of which was obtained by MarketWatch.

http://www.marketwatch.com/story/new-gold-bugs-taking-gold-mainstream-2009-11-23