Rumors Large Hedge Fund Liquidating Precious Metals Positions

With the equity markets seeing increase volatility and the indexes dropping sharply this week, it would make sense that traders and money managers turn to precious metals.

Not so this week.

There are rumors today that a major macro hedge fund with heavy precious metal exposure is liquidating his or her position, and possibly even seeing massive redemption rumors.

There are rumors that the fund is John Paulson's Paulson & Co., which has had a massive exposure to gold for a while now.

At last check, gold was off almost $72 an ounce to $1,669.10, while silver was off over $4 an ounce to just over $32 an ounce.

One related ETF is the SPDR Gold Trust ETF (NYSE: GLD).