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Best way to hege price of gold?


DTEJD1997
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It seems like futures (or GLD puts) would be the easiest and least expensive option.

 

You could go to your local pawn shop and lend against the gold.  Probably at a very high interest rate.

 

Since you're wanting to hedge against price movements in the underlying currency, you could simply sell some gold and raise some cash.

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Bitcoin

 

I was mostly joking, I think Bitcoin will replace a lot of gold investments in the medium to long term, but not really a good way to hedge the shot term price of gold.  But:

 

"According to the note, Bitcoin accounts for just 0.18% of family office assets vs. 3.3% for gold ETFs - a rebalance could bring many billions to the crypto at the expense of the yellow metal. They suggest a possible pair trade, buying one unit of GBTC vs. selling three units of GLD."

 

https://seekingalpha.com/news/3642974-bitcoins-gain-may-equal-golds-pain-jpmorgan

 

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