Well it is a means of protection, a defensive move against financial loss. With a Hedge Fund you are protecting your purchasing power. Your basically Hedging your bets against fiat currencies and savings which currently offer little to no interest.
Gold on the other hand has long been considered a great hedge fund in times of economic uncertainty. For example during the crisis of 2008 when Lehman brothers crashed, gold moved up in a different direction to other assets.
Silver too is a great Hedge against inflation and choppy economic seas! Currently highly undervalued, it has a dual path of both precious metal and industrial commodity and is being used up in huge quantities on mobile phones, pc's and other electronic devices. The mining of it is down too, all contributing to a diminishing supply, making it a great two way bet.
With economic growth industrial demand rises pushing up the price. When demand falls, it makes a great hedge fund as a precious metal. I would also add being an ever rare metal, any coin or round struck in silver will always have a steady and intrinsic value in years to come.
Finally, both gold and silver have long been considered something of real value. Unlike fiat currencies that devalue with every round of printing and QE, thus diminishing your purchasing power, gold and silver are real money! Other reasons that make them a great Hedge Fund are that they are free from government intervention, great insurance, and both rise with inflation, and historically they have performed well. Bare in mind neither pay out a annual yield as with some other investments. However, if your in for the long haul then these two hard assets are well worth considering, Happy Hedgeing!
If this has been of any interest or help please share. And as usual your comments are always welcome!