Gold Fund
While many mutual funds focus on manufacturing and production stocks within precious metals, a few new ETF entries have focused primarily on ownership of gold bullion. Gold funds are a valuable tool for investors, including speculators (gold can be a very volatile commodity) and those wishing to hedge against geopolitical instability. Gold is also valuable as bet against a falling currency. By investing in a gold fund, a retail or institutional investor can gain exposure to this asset without the hassle of taking delivery of physical gold assets, which is often required in the commodities market.
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Shorting Against The Box
A hedging technique used by investors to protect a profit until a later tax year. Essential this involves having a long position in a security and shorting an equal number of shares in that same security. The Taxpayer Relief Act of 1997, essentially eliminated the use of 'selling short against...
