Gresham Gold

Gold has been viewed as a store of value throughout human history and been linked to the concept of money since King Croesus of Lydia first struck gold coins in the middle of the 6th century BCE. Over the course of the past five centuries, gold evolved from a physical currency to an anchor for paper currencies under the Gold Standard and the Bretton Woods Agreement, until 1971 when the official link between the metal and the world’s major currencies was severed. Since that time, however, gold has retained its position as an asset of choice for the world’s central banks, and for investors who view the hyperfinancialization of economies and markets, together with the ever-increasing issuance of fiat currencies and debt, as a threat to the preservation and growth of wealth.

Gresham’s Gold strategies allow investors to replicate gold exposure in order that they may increase portfolio diversification through exposure to an asset that is far scarcer in its supply than the financial assets that typically constitute the rest of the portfolio. Gold exposure is expected to be accretive to a portfolio when political uncertainty, global debt, and monetary inflations are perceived to be increasing. Underlying this expectation is the fact that gold is an asset that is no-one’s liability.

Gresham Gold’s objective is to replicate, as closely as possible, the Bloomberg Gold Subindex Total Return (“BCOMGCTR”), a commodity group subindex of the Bloomberg Commodity Index Total Return (“BCOMTR”). The BCOMGCTR is a highly liquid and transparent alternative to investments in gold coins, gold bullion, ETFs, and gold mining stocks.  The BCOMGCTR is denominated in United States dollars and is wholly composed of exposure to the COMEX 100oz gold future, which is a product of the CME Group.  Gresham Gold’s returns will accrue from the aggregation of four factors:

  1. the change in price of gold futures;

  2. the cost or benefit of rolling futures positions ahead of first notice;

  3. futures commissions costs, and

  4. return on cash collateral invested in three-month U.S. dollar-denominated Treasury bills.

Gresham Gold is managed by the Gresham Commodities Team.

ALL INVESTMENTS INVOLVE RISK INCLUDING LOSS OF PRINCIPAL.

PAST PERFORMANCE RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.