If the opinion of a billionaire is of any consequence, it is a good time to get you into the gold market. George Soros has been a leader in the financial world since he bet against the British pound in 1992 and won making a fortune in the process. Recently he cut the investments of the firm in the U.S. stock market by over a third all in the first quarter of 2016. Along with that move Soros managed to procure a $264 million stake in Barrick Gold Corp one of the world’s biggest producers of gold bullion. It is clear that Soros thinks it is a good time to be in the gold market.
It was publicly disclosed recently that the hedge fund that Soros manages on http://www.forbes.com/profile/george-soros/, the value of that fund dropped to $3.5 billion which is down by over a third of its previous value according to a recent government filing. It was 1.7 percent of Barrick which made his firm the biggest U.S. listed holding. That was not the only gold that George Soros was involved in, as it was disclosed that they also own call options on 1.05 million shares that are in the SPDR Gold Trust. This is an exchange-traded fund that keeps track of the price of gold.
It was the savvy market moves in his has warned anyone who will listen to be careful of the risks in financial markets in China. George Soros believes that the economy is being fueled by debt and that is too similar to the United States in 2007-08. That environment caused one of the most serious financial crises in recent history. He feels that it is unavoidable that the economic landing in Asia will be particularly hard and that the economic repercussions are going to reverberate throughout markets all over the world. This will drag stock prices down in all parts of the world. So the smart money is going to be on some other investment, like U.S. Government bonds.
This concern over China is making George Soros very nervous about currency inflation and that is why he is buying all of these gold stocks. It is a safe investment that is only going to grow in value over the near future. The Chinese are buying as much gold as possible which only drives the price up. That is a good thing for the future of Soros and his hedge fund. Because of his past history, it would not be smart to bet against him. Read more on http://www.nybooks.com/contributors/george-soros/
George Soros is a world renowned philanthropist as well as billionaire hedge fund manager. He has supported human rights and freedom all over the globe throughout his adult life. He is responsible for establishing Open Society Foundations in over 100 countries. They are advocates of transparency in government and protection of personal rights. Born in Hungary, Soros was a survivor of WWII and the German occupation. Soros has authored over a dozen books including one of his latest, The Tragedy of the European Union.