Hedge funds slash bullish wagers on gold over Trump election win
The precious metal has fallen about 8% from a record high on Oct. 31, with losses accelerating after Trump’s election victory last week.
Toronto-based funds manager Sprott Inc (TSX:SII), together with Zijin Mining Group Co and Americas Now Resources Investment Management Corp. will create a $500 million metals and minerals fund to invest mostly in equities and debt instruments related to gold, precious metals, copper and minerals.
According to Reuters, Zijin —which is China’s main gold producer by market value—, will provide a $100 million injection to the fund. Sprott will, in turn, commit $10 million and at least 5% of aggregate capital contributions and Americas Now will contribute with technical and marketing services.
