In reviewing the various commentaries, this one by Greg Hunter titled “Do What Soros Does, Not What He Says” struck me as interesting.
It seems Mr. Soros claimed, “the ultimate asset bubble is gold,” yet his fund management group became the fourth largest investor in the SPDR Gold Trust. (Soros More Than Doubled Gold ETF Stake in 4th Quarter) Plus, “gold is now the single largest investment in the multi-billion dollar fund George Soros runs.”
Furthermore, Mr. Hunter found other investment authorities buying gold as well.
“Other big financial players are seeing trouble too–that’s why they are buying gold. John Paulson, the hedge fund manager who made billions shorting the housing sector just as the subprime mortgage crisis got underway, started a gold fund late last year. David Einhorn, another investment guru who made a mint shorting Lehman Brothers long before it went under, bought thousands of ounces of physical gold for his fund early last year.”
Now, let’s look at recent market information.
First, TheStreet.com talks about Gold Prices Rebounding. Gold prices fluctuated this week due in part to the IMF announcing they planned to sell 200 tonnes of gold and the Chairman of the Fed announcing an increase in the discount interest rate from 0.50 to 0.75 percent.
Similarly, The Motley Fool commented that not only Olympians can enjoy gold and silver with their article, Your Moment to Go for the Gold and Silver. Isn’t it timely that the Olympics coincide with increases in the metals markets?
Looking at a broader timeline, the commentary, Gold’s Bull Market Turns 9 Years Old, reviews gold’s performance over the years. They chart the performance of gold against major currencies and note, “Gold Remains Strong in All Currencies.”
They end their analysis with the viewpoint, “Pressure is likely to stay on gold and the metals in the weeks ahead, which means it’s time to take advantage of weakness by adding or buying new positions. Gold’s major trend remains up, indicating it’s headed higher. But for now, it will temporarily remain under downward pressure by staying below $1110.”
In conclusion of the initial commentary, Mr. Hunter says, “‘Do What Soros Does, Not What He Says,’ because he is worried about something, and you should be too.”
Now, is Mr. Soros worried? Or, is he a savvy investor who knows how to read the market and the economics of our country and the world?
I vote for the savvy investor.
Could this be the right time for a significant gold and silver investment?