Hi Andy

Great point! I agree the performance spread in the chart is very wide, but it is dynamic and changes over time as people move into or out of either HUI or the underlying. There is interest in HUI at the moment, and it could, in fact, be funds buying.

Unfortunately we can’t source who is buying HUI, at least directly. Likely could review 10-Ks and see what various funds are up to.

That would be an interesting project and almost for certain some bank or hedge fund has already does this. Would be interesting to look at the spread in more detail.

And HUI isn’t a substitute for gold. You get exposure to the metal, also end up with enterprise value from the businesses comprising the index when you hold it. So there is an element of speculation involved by holding HUI, beyond that of holding gold.

That drives the spread to either expand or contract.

Retired Investment Banker, Deutsche Bank, ABN AMRO, Moodys, now University Lecturer in London. Financially independent student of markets. American / British.

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Dave Coker

Retired Investment Banker, Deutsche Bank, ABN AMRO, Moodys, now University Lecturer in London. Financially independent student of markets. American / British.