FYI: Spurred by economic uncertainty,
interest in precious metals has
increased dramatically. Investors
target precious-metal funds for
two primary reasons: (1) to cap-
ture an expected appreciation in
precious-metal prices and (2) as a
form of portfolio insurance. The
authors compare the advantages
and disadvantages of traditional
funds with those of newer types of
funds, including bullion, synthetics,
and equity. They find tremendous
variation in both fund returns and
efficacy in serving the two pri
-
mary investor motivations. Their
findings imply that the success of a
commodity investment hinges on
the type of fund selected
Regards,
Ted
https://www.cfapubs.org/doi/pdf/10.2469/faj.v74.n1.5
