Pacific Group Going for the Gold
Gold seems to be the new hedge funds, or at least it’s that way for William Kaye, founder of the Pacific Group Ltd. Kaye, who is also the chief investment officer and a former PaineWebber trader, is unloading upwards of one third of his hedge fund assets and moving them into gold bullion.
The Hong Kong based Pacific Group is gearing up to take possession of the $35 million worth of gold bars soon, and plans on storing them in vault space at the Hong Kong International Airport. The bars are suitable for trade on the London Bullion Market Association as well as other international markets.
The move to gold is fueled by fear that governments are on the verge of printing more money to cover their debt expenses, this lowering the value of their money and stimulating the price of gold to rise.
“Gold, the way we look at it, is anywhere from being undervalued to being seriously undervalued,” Kaye said. “We’re in the early stages, in our judgment, of what would likely be the world’s largest short squeeze in any instrument.”
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