Goldbars, two links below discuss the hedge fund situation as of last week. Assets under management are $1.7T, which the funds have been leveraging 30-1 as you know. Of these, $150B is estimated to have already been redeemed by investors and $680B (40%) unwound into cash, which the funds are sitting on. Another $250B could be redeemed by mid 2009 if you believe these reports.
Yesterday someone posted this excellent interview with the UK’s biggest bullion dealer, Tony Baird.
http://commoditywatch.podbean.com/2008/11/19/a-healthy-dose-of-reality-tony-baird-of-baird-and-co/
Tony says gold prices haven’t taken off yet because hedge funds have been unwinding their profitable commodity positions to pay for margin calls and redemptions. However, he expects “quite substantial price gains” in both gold and silver within 12 months. He also disagrees with the conspiracy theorists, saying they are basing their theories on an incomplete picture.
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http://seekingalpha.com/article/106663-citigroup-report-hedge-fund-assets-could-fall-to-1-trillion
http://runningofthebulls.typepad.com/toros_running_of_the_bull/2008/11/hedge-fund-withdrawals-63-billion-in-october.html
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