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Why Would Soros Dump All His Gold?

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http://money.cnn.com/2011/05/17/markets/soros_gold/?section=money_latest

A bold move from someone with such a public profile. Why not sell it off in tranches? Does he know something we don't?

He likes his profits. Like my ex-landlady, who sold up in 2005!

If he's sold all his gold, perhaps he sees a high risk of gold's bubble deflating significantly and it could just be imminent.

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Guest The Relaxation Suite

He likes his profits. Like my ex-landlady, who sold up in 2005!

If he's sold all his gold, perhaps he sees a high risk of gold's bubble deflating significantly and it could just be imminent.

That's what I was thinking but it just seems like such an obvious signal to send out?? He could have done it in tranches and it's not a news report. This way we're all looking at gold through a different lens.

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That's what I was thinking but it just seems like such an obvious signal to send out?? He could have done it in tranches and it's not a news report. This way we're all looking at gold through a different lens.

because he wants to buy it back later on when the large amount forces a drop hoping that other investors push the price down.

the US dollaris in decline and i guess he wants to buy back more at a later date, the amount owed by the US cannot be paid back.

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All profits are paper profits until you sell and no investment will magically rise above inflation for ever. There is a time to buy and a time to sell. Knowing when to sell is far harder than seeing a buying opportunity.

Soros is a professional investor, most of his calls are right.

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I listened to an excellent presentation by Paul Tustain of Bullion Vault. His reasoned arguments why gold will retain its value because of inflationary pressures made a lot of sense.

Soros on the other hand made his gold purchases because he anticipated deflationary pressures on the global economy. I haven't seen an explanation of his reasoning. Can anyone enlighten me?

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Paulson (another billionaire) kept his and is still buying (expecting $thousands an ounce).

I suspect Soros might have become wary of ETFs. Perhaps he has exchanged his paper for allocated bullion?

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Paulson (another billionaire) kept his and is still buying (expecting $thousands an ounce).

I suspect Soros might have become wary of ETFs. Perhaps he has exchanged his paper for allocated bullion?

There ahve been large flows from ETFs to physical (Texas pension Fund) no doubt GS is doing the same thing but trying to manipulate the price along the way.

Paper bugs be assured there is no fear holding Gold unless its in an ETF.

Its paper whats in a thirty year bubble George Soros knows that same as Paulson.

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...and no investment will magically rise above inflation for ever....

I think you'll find that gold isn't rising above inflation - paper is crashing against commodities.

Until they wind back the printing presses, abd have a proper rate in interest, then I'm afraid you may still end up surprised at the rise in the paper cost of gold.

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He might of sold it because it costs less to dig it out of the ground than it costs to buy at present.

At the end of the day it's a commodity, and looking at it as a commodity it's over valued.

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http://www.bloomberg.com/news/2011-05-16/soros-sold-most-of-his-gold-etp-holding-during-first-quarter-filing-shows.html

Soros Sells Most of Gold ETP Holdings During First Quarter

Billionaire investor George Soros sold most of his holdings in the bullion-backed SPDR Gold Trust and iShares Gold Trust (IAU) funds in the first quarter and bought shares of mining companies Goldcorp Inc. and Freeport-McMoRan Copper & Gold Inc. (FCX), a government filing shows.

Soros Fund Management LLC held 49,400 shares of SPDR Gold Trust as of March 31, compared with 4.721 million at the end of the fourth quarter, the filing today with the U.S. Securities and Exchange Commission showed. The New York-based fund sold all 5 million shares it held in iShares Gold Trust. Soros bought 301,300 shares of Freeport-McMoRan and 7,600 shares of Goldcorp.

Out of Bullion backed paper and into more physical :P

I think he might OG

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He might of sold it because it costs less to dig it out of the ground than it costs to buy at present.

At the end of the day it's a commodity, and looking at it as a commodity it's over valued.

Quite. A lot of the speculation seems (to me) to assume that there will be increased demands on limited supplies of energy, along with failing nations. If it doesn't unfold like this, I struggle to see where the support for commodities will come from.

I sold my PMs a while back, as I needed the cash. However, I have not been as enthusiastic about buying more right now.

(These are all just my opinions though and in no way is it advice!)

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http://www.bloomberg.com/news/2011-05-16/soros-sold-most-of-his-gold-etp-holding-during-first-quarter-filing-shows.html

Soros Sells Most of Gold ETP Holdings During First Quarter

Billionaire investor George Soros sold most of his holdings in the bullion-backed SPDR Gold Trust and iShares Gold Trust (IAU) funds in the first quarter and bought shares of mining companies Goldcorp Inc. and Freeport-McMoRan Copper & Gold Inc. (FCX), a government filing shows.

Soros Fund Management LLC held 49,400 shares of SPDR Gold Trust as of March 31, compared with 4.721 million at the end of the fourth quarter, the filing today with the U.S. Securities and Exchange Commission showed. The New York-based fund sold all 5 million shares it held in iShares Gold Trust. Soros bought 301,300 shares of Freeport-McMoRan and 7,600 shares of Goldcorp.

Out of Bullion backed paper and into more physical :P

I think he might OG

Interesting. Shares aren't physical though - it's still paper.

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He might of sold it because it costs less to dig it out of the ground than it costs to buy at present.

At the end of the day it's a commodity, and looking at it as a commodity it's over valued.

If you ignore over 5,000 years of economic history then you maybe right.

But as to why all central banks hold Gold and are net buyers well I am sure you have the answer.

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Interesting. Shares aren't physical though - it's still paper.

Correct, but he has jumped from maybe "claimed backed" gold to something more physical.. mining companies.

His physical stash... who knows ? :)

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I doubt that. You just don't hear when he's wrong.

Which is why he said "most of the time", but on balance Soros has been right.

Edited by exiges

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Again, I doubt that. I've yet to meet any trader/portfolio manager/investor who's right more often than he's wrong. Soros is no exception to that. He's wealthy because he cuts losses and sits on profits, not because on balance he's right.

Doesn't that by definition make him more right than wrong?

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http://www.bloomberg...ling-shows.html

Soros Sells Most of Gold ETP Holdings During First Quarter

Billionaire investor George Soros sold most of his holdings in the bullion-backed SPDR Gold Trust and iShares Gold Trust (IAU) funds in the first quarter and bought shares of mining companies Goldcorp Inc. and Freeport-McMoRan Copper & Gold Inc. (FCX), a government filing shows.

Soros Fund Management LLC held 49,400 shares of SPDR Gold Trust as of March 31, compared with 4.721 million at the end of the fourth quarter, the filing today with the U.S. Securities and Exchange Commission showed. The New York-based fund sold all 5 million shares it held in iShares Gold Trust. Soros bought 301,300 shares of Freeport-McMoRan and 7,600 shares of Goldcorp.

Out of Bullion backed paper and into more physical :P

I think he might OG

sounds like a punt on global recovery - especially with respect to commodities (ie emerging market) economies

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