Tag: Ray Dalio

 The Story: Last week NewYork-Presbyterian, a healthcare provider encompassing 10 hospital campuses across the New York City metropolitan area, announced the creation of an affiliated...

In addition to rising demand from hedge fund managers, central banks increased their gold demand 25% last quarter, according to the World Gold Council’s “Gold Demand Trends Q3 217 Report,” released last week. The leading gold buying central bank nations were: (1) The Russian Federation, buying 63 tons last quarter and 164 tons year-to-date, well ahead of the 129 tons bought in the first nine months of 2016; (2) The Central Bank of Turkey bought 30.4 tons of gold in the third quarter year, bringing its total holdings to 167.4 tons at the end of September. Global demand for gold bars and coins also rose, gaining 17% compared to the same quarter last year. He also kept all his shares in various gold stocks. Another billionaire hedge fund manager, Ray Dalio, revealed that his Bridgewater fund more than tripled its holdings in the iShares Gold Trust and multiplied its SPDR Gold Shares holdings by nearly seven-fold. All in all, hedge funds and other investors added a combined $672 million in their holdings in SPDR Gold, the world’s biggest gold ETF, and another $764 million into iShares Gold, according to Bloomberg. This is not true of rare U.S. gold coins, of course, but it is true of circulated gold coins and some common-date uncirculated lower grade gold coins. In a strong bull market, these coins have historically traded at more significant premiums to the price of gold, but now the more commonly-traded gold coins are close to the price of gold bullion itself, so this marks a unique buying opportunity for leveraging the price of gold by owning common-date lower grade uncirculated U.S. gold coins, like MS-62 or MS-63 $20 Liberties, with little “downside risk” outside of the price of gold itself. Gold mining stocks are also touted as a way to “leverage the price of gold,” but they don’t have the inherent advantage of rare gold coins. With rare gold coins you will never see them trading below the price of their “melt value” gold.