Pacific Group Hedge Fund Converting 1/3 Assets To Physical Gold

http://www.zerohedge.com/contributed/2013-01-21/pacific-group-latest-hedge-fund-buying-physical-gold-converting-13-assets-gol

It's only a 100 million dollar hedgefund but I like the statements I quoted.

Ownership of gold through financial instruments based on it, such as Comex futures contracts, now represents more than 100 times the physical gold that exists above ground worldwide, Kaye said, citing the Pacific Group’s own analysis.

“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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When people start saying this stuff out loud it will definitely become a short squeeze. Musical chairs is all fun until you're the one still standing when the music stops. There will be a financial trigger of some kind where folks will all try to take delivery of their precious metals. When that happens, there will be far more tears than smiles.

Yip.

I wish these guys would keep their mouths shut about the divergence between physical and paper gold (so I can keep buying it on the cheap lol).

I kind of feel the same way MN. For the last two years I have watched as silver vacillated around in a wild range, and each time it got near some psycholgical point or another "they" would arange a nice drive by shooting. I think "they" need to keep it tamped down for a bit longer, but I have a feeling that when last years unemployment numbers gets revised, and when Christmas earnings are reported, the paper market will shit the bed for a short time as folks run for cover, but i believe it may be the last opportunity for a long time to get metal cheap.

More details from the Bloomberg source article:

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The Hong Kong-based asset manager plans to take delivery of $35 million worth of gold bars that can be traded on the London Bullion Market Association and other international markets, William Kaye, its founder and chief investment officer, said in a telephone interview on Jan. 18. It has secured vault space at Hong Kong International Airport to store the gold, he said.
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http://www.bloomberg.com/news/2013-...t-one-third-of-hedge-fund-assets-to-gold.html