Another respected hedge fund, the Pacific Group, has decided to convert one third of its hedge-fund assets into physical gold. The Pacific Group Ltd., which manages more than $100 million worth of assets, believes that gold will continue to rise as governments print more money to pay off debt, according to Bloomberg.
Let's say you owe the world €2 trillion, but you also hold the world's fourth largest hoard of physical gold. Sounds like a no-brainer, right? Use Italy's gold to pay Italy's debt. Trouble is, Rome's gold would be worth only a drop in the bucket. The gold isn't Rome's to sell either.