What Is A "Hedge"

Discussion in 'Bullion Investing' started by Coin Chick, Dec 14, 2010.

  1. Coin Chick

    Coin Chick Loves Gold

    What is a hedge with silver investing? I heard someone talking about that the other day but did not want to ask what a hedge was.
     
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  3. Ginger1

    Ginger1 Member

    Physical Gold and Silver might not generate interest payments as a bonds do, however the real question is whether such interest payments can make up for the loss of buying power that fiat currencies experience, and will experience in the coming decade.

    Used as a store of value and money for over 2500 years both physical Gold and Silver have been the traditional store of value with the unique advantage of being a finite resource which cannot be generated at will out of thin air. It is the currency of last resort that is universally accepted and it’s buying power per pure ounce has endured throughout the ages.

    A hedge is a fund that can take both long and short positions, use arbitrage, buy and sell undervalued bullions and invest in almost any opportunity in any market where it foresees impressive gains at reduced risk.
     
  4. webstandardcss

    webstandardcss New Member

    Any unregistered investment fund, often characterised by unconventional strategies (i.e., strategies other than investing long only in bonds, equities or money markets). All hedge funds are supposed to be hedged from risk; hence the name
     
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