Bloomberg Hedge Fund Summit 2012: Commodities With Ospraie's Anderson

Bloomberg Hedge Fund Summit 2012, next up is Dwight Anderson, Managing Partner, Ospraie Management, LLC, the famous commodities hedge fund. Dwight notes that platinum should never trade at a discount to gold, since it is scarcer and much harder to extract. However, the demand side has created this market inefficiency. Additionally, central banks buy gold not platinum. Supply is down 10% in South Africa, which is 80% of the world’s supply. It will take a long time for supply to catch up when demand takes off. Ospraie has found extremely cheap options on platinum and palladium, and have bought calls on both of them. They are attractive…