In the world of gold and silver investing, Soros made headlines in January of 2010 when he declared on primetime that gold was “the ultimate bubble.” Posted by James Randolph on January 25, 2012
Soros Went on Gold Investing Spree
January 25, 2012 – Again, in a stunning example of a hedge fund manager saying one thing while doing the exact opposite, it is now emerging that the legendary financier George Soros went on a gold investing spree in late 2011. Soros, who started the Quantum Fund with Jim Rogers and made the fabled trade that broke the Bank of England in 1992, is one of the most well-known investors living in the world today. Reports are emerging that contradict what Soros has said about the way he is handling his money in his monolithic hedge fund.
In the world of gold and silver investing, Soros made headlines in January of 2010 when he declared on primetime that gold was “the ultimate bubble.” Mr. Soros said this at the World Economic Forum in Davos Switzerland, of all places. Meanwhile, his fund was buying gold, proving that Soros either did not believe what he was saying or did not know what his hedge fund was doing. A guy like George Soros keeps pretty good track of his money, so we can effectively rule one of the two out.
Of course, gold was trading at $1,225 an ounce when Mr. Soros made his prediction and had risen 40 percent in the previous year. Gold also rose over 25 percent for the remainder of 2010 and even with an end of the year correction finished out 2011 with an 11.6 percent gain. That’s a pretty good track record and it was jarring for more than a few analysts to see the man who broke the Bank of England “miss the curve,” so to speak.
It came as no surprise then to discover that Soros’ hedge fund was purchasing gold in quantity even as he was saying it was the ultimate bubble. His actions prove a little more reliable than his words. Further, the billionaire began making more headlines in the gold market, after understandably remaining quiet for a year or so, in May of 2011 when he again bashed gold and reportedly sold his positions. Gold then reached an all-time nominal high of $1,923 an ounce in August and September, proving uncooperative with Soros’ forecasts.
At the very end of 2011, it emerged that Soros cut 99 percent of his holdings in the first quarter of that year. Though there were published reports in May, it was only quantified by Securities and Exchange Commission data that came out at the end of the year. Soros Fund Management selling almost all of its share in the SPDR Gold Trust made waves throughout the market, with some taking it as an omen in itself simply because of George Soros’ reputation.
Now, it is being reported that Soros Fund Management bought gold again at the very end of 2011, during the December correction. According to reports, Soros is doing it again, now. While some analysts were wondering whether gold had entered a bear market, Soros was buying it up, proving again that the long-term fundamentals of the market, along with inflationary governmental policy, will make gold investing the best investing of the coming months.
Senior Staff Writer – Certified Gold Exchange