Gold has been a pretty cruel mistress to the hedge fund set, especially to one very special member of that set. Still, they can’t quite quit her: She’s just so damned glittery and pretty and goddamn it why doesn’t everyone want her as much as they do? Still, they’re not called hedge funds for nothing, and nobody said this chrysophilia was monogamous or exclusive or anything. Gold’s great, but she’s not the only thing that shines.
Last week, hedge funds snapped up silver at the fastest pace since 1997, increasing their net long position to a three-month high according to data from Bank of America Merrill Lynch. Large speculators increased their net long position to $4.4 billion as of May 19, up from $2.4 billion in the previous week, according to the bank’s research….
Hedge funds are also buying gold at the strongest rate since June, increasing their net long gold exposure to $14.8 billion, up from $9.2 billion over the same period, according to Bank of America Merrill Lynch.
Hedge Funds Have Taken a Shine to Silver [WSJ MoneyBeat blog]