HedgeFund Greenlight Capital Pulls Out Of ETF-GLD
In what appears to be a tsunami of inflation on the way, Greenlight Capital Inc. has decided to change the way they are investing in gold. They apparently found that there is a benefit to buying physical gold and storing it, as opposed to going the ETF route. The difference is storage costs versus ETF management costs. Bloomberg reports: ”Greenlight Capital Inc., the $5 billion hedge-fund firm run by David Einhorn, told investors it switched all of its holdings in a gold exchange-traded fund into bullion during the second quarter.”
“At a minimum this will provide some savings as the costs of storing gold are less than the fees” for the SPDR Gold Trust, the New York-based firm said yesterday in a letter to investors.
“Einhorn, 40, told clients in January he was buying gold for the first time amid the threat of inflation from higher government spending. The firm, started in 1996, held 4.2 million shares of SPDR Gold Trust in the first quarter, making the gold- backed ETF its biggest holding. Gold has climbed 5.8 percent this year.”
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