This video of Kyle Bass, managing member at Hayman Capital Management, explaining why and how investors should own gold appears to be a couple months old, but it popped up the other day in a few places and is worth sharing if for no other reason than that the logic behind his arguments are so simple.
His thoughts about storage costs apply to individual investors as well as hedge funds. Over the long-run, you’re much better off holding the physical metal rather than paying the small management fees for an ETF or transaction/rollover costs of futures based gold products.
Probably the most important comment was the one by the head of deliveries at the COMEX as related by Bass who said, should the number of requests for delivery rise sharply, “price will solve everything”.
