Stay Beautiful Posted May 18, 2011 Share Posted May 18, 2011 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. Its seen as much more than a commodity by many. Quote Link to comment Share on other sites More sharing options...
cool_hand Posted May 18, 2011 Share Posted May 18, 2011 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. It depends if your view is short term or long term. I don't have 5000 years to wait for a return on my investment. If I did I would be filling my boots at the current price. Quote Link to comment Share on other sites More sharing options...
winkie Posted May 18, 2011 Share Posted May 18, 2011 Replying to Why Would Soros Dump All His Gold? ...because it is his job, he is a trader, he buys low and sells high.....he would only sell if he thought it would make him some money. ...What good is buying Gold to hold?......it has to be sold at some point in time, tied up money not producing an income is dead money. Quote Link to comment Share on other sites More sharing options...
gravity always wins Posted May 18, 2011 Share Posted May 18, 2011 It depends if your view is short term or long term. I don't have 5000 years to wait for a return on my investment. If I did I would be filling my boots at the current price. A blatant misunderstanding of the point, I am sure you weren't trying to be too difficult. Quote Link to comment Share on other sites More sharing options...
athom Posted May 18, 2011 Share Posted May 18, 2011 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. so you're willing to believe the GA (gold agent) who says gold prices only ever rise and there has been an end to gold boom and bust? Quote Link to comment Share on other sites More sharing options...
Lepista Posted May 18, 2011 Share Posted May 18, 2011 so you're willing to believe the GA (gold agent) who says gold prices only ever rise and there has been an end to gold boom and bust? I think if you read his post you'll see that he found the arguments solid and persuasive. Look at the facts, not the messenger. Quote Link to comment Share on other sites More sharing options...
azogar Posted May 18, 2011 Share Posted May 18, 2011 Replying to Why Would Soros Dump All His Gold? ...because it is his job, he is a trader, he buys low and sells high.....he would only sell if he thought it would make him some money. ...What good is buying Gold to hold?......it has to be sold at some point in time, tied up money not producing an income is dead money. ah, that will be the central banks (for now anyway) Quote Link to comment Share on other sites More sharing options...
Number79 Posted May 18, 2011 Share Posted May 18, 2011 The institutional investors and large funds usually sell in the first quater. They buy in the summer low and take their profits in the first quater when the average joe is looking for a dip from the autumn rally to buy. Given the run that gold had since last autumn there was a lot of profit to take, looks like soros wanted to be ahead of the game in taking his off the table. I dont think it means the end of the world, just that he will be buying again in august. Quote Link to comment Share on other sites More sharing options...
gravity always wins Posted May 18, 2011 Share Posted May 18, 2011 Its always great to come to this site to be reminded of the profound ignorance of most pf the general public when it comes to understanding money. Gold in a bubble? Not yet. Anyone of you investment gurus seen UK house prices in ounces of gold over the last few years? Talk about a crash! Anyway back you go to waiting for your housing to crash in paper terms! Quote Link to comment Share on other sites More sharing options...
Realistbear Posted May 18, 2011 Share Posted May 18, 2011 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? George is not unlike Warren Buffett. They are both buy low sell high merchants and they get out before the herd moves in the wrong direction. No wonder they are rich buggers. Go do likewise and you too can be rich like them! Quote Link to comment Share on other sites More sharing options...
Lepista Posted May 18, 2011 Share Posted May 18, 2011 George is not unlike Warren Buffett. They are both buy low sell high merchants and they get out before the herd moves in the wrong direction. No wonder they are rich buggers. Go do likewise and you too can be rich like them! If your strategy is "buy like George", then why have you been suggesting gold has been in a bubble for the last five years, constantly calling the (false) top? Why haven't you been doing as he has and been buying gold until now? How do you know that his move won't cause a great dip in the market, at which point his plan is to buy it up again at a bargain price? After all, his motive is to make money - even at the expense of the ordinary punter. Do as he does, and you could lose a fortune. Quote Link to comment Share on other sites More sharing options...
gravity always wins Posted May 18, 2011 Share Posted May 18, 2011 Go do likewise and you too can be rich like them! But RB you were calling a top all the time he was buying. Now he is converting paper to physical. Nice bit of irony. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted May 18, 2011 Share Posted May 18, 2011 If your strategy is "buy like George", then why have you been suggesting gold has been in a bubble for the last five years, constantly calling the (false) top? Why haven't you been doing as he has and been buying gold until now? How do you know that his move won't cause a great dip in the market, at which point his plan is to buy it up again at a bargain price? After all, his motive is to make money - even at the expense of the ordinary punter. Do as he does, and you could lose a fortune. Soros may be a good sell signal but you never know when the herd is going to move or even where. George and Warren decide how much is enough and get out. They are usally good at market timing which is why they are so rich. No one can call the top unless they are lucky which is why you take a guess and take action accordingly. Nearly all gold bugs get burned because they can't let go and take profits. I prefer stocks and bonds as they are easier to buy and sell. Last couple of years was a good time to be buying bonds and I did unload earlier this year to take profits. Howver, I find myself dipping a toe in again as IR are going nowhere and PIMCOs corporates are flying again. Quote Link to comment Share on other sites More sharing options...
Lepista Posted May 18, 2011 Share Posted May 18, 2011 ...Nearly all gold bugs get burned... Really? I doubt that ANY have got burned in the last 25 years. Quote Link to comment Share on other sites More sharing options...
Harry Sacks Posted May 18, 2011 Share Posted May 18, 2011 He's been "asked" to "sell" in a bid to restore faith in the $. These guys are all in it together. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted May 18, 2011 Share Posted May 18, 2011 Really? I doubt that ANY have got burned in the last 25 years. Building up for one big burn off then? Hanging on for that last 1% profit has cost many dearly over the years of chasing tulip/gold/dot com manias. As you know gold has proven to be the standout worst investment over that period due to inflation. With a peak at $2743 in 1980 (IA) it lags stocks, bonds and even an NS&I savings account. Soros did the right thing IMO--if he made a huge profit he can sit back and not worry if the market is going to collapse as it did shortly after the last record (IA) peak. I am pleased to have sold of my bonds this year even though I would have cotinued to have made money if I had held a bit longer. But unless there is a pint at which you take the profits you have made nothing--even if your hold holdings rise another 300%. You can only claim you made a good investment when you convert that investment into money to buy something else. Otherwise its just theoretical. Looks like George's sell off is helping gold for now: GOLD 05/18/2011 05:29 1492.50 +0.37% Quote Link to comment Share on other sites More sharing options...
Lepista Posted May 18, 2011 Share Posted May 18, 2011 Building up for one big burn off then? Hanging on for that last 1% profit has cost many dearly over the years of chasing tulip/gold/dot com manias. As you know gold has proven to be the standout worst investment over that period due to inflation. With a peak at $2743 in 1980 (IA) it lags stocks, bonds and even an NS&I savings account. Soros did the right thing IMO--if he made a huge profit he can sit back and not worry if the market is going to collapse as it did shortly after the last record (IA) peak. I am pleased to have sold of my bonds this year even though I would have cotinued to have made money if I had held a bit longer. But unless there is a pint at which you take the profits you have made nothing--even if your hold holdings rise another 300%. You can only claim you made a good investment when you convert that investment into money to buy something else. Otherwise its just theoretical. Looks like George's sell off is helping gold for now: GOLD 05/18/2011 05:29 1492.50 +0.37% Likewise, you can only get burned if you sell and make a loss. You said that MANY gold bugs have got burned. You have yet to back that up with any fact at all. Quote Link to comment Share on other sites More sharing options...
Number79 Posted May 18, 2011 Share Posted May 18, 2011 Likewise, you can only get burned if you sell and make a loss. You said that MANY gold bugs have got burned. You have yet to back that up with any fact at all. He means himself, HE got burned in 1980 and still has nightmares about it Soros sold his mining stock in jan/feb/mar, nothing odd about that tbh. It doesnt mean that he is bearich, it doesnt mean anything and no one knows what he has done with the proceeds. Quote Link to comment Share on other sites More sharing options...
Lepista Posted May 18, 2011 Share Posted May 18, 2011 He means himself, HE got burned in 1980 and still has nightmares about it Soros sold his mining stock in jan/feb/mar, nothing odd about that tbh. It doesnt mean that he is bearich, it doesnt mean anything and no one knows what he has done with the proceeds. I wonder whether he will be similarly scared of bonds in 20 years time, when he gets burned there too? Quote Link to comment Share on other sites More sharing options...
R K Posted May 18, 2011 Share Posted May 18, 2011 http://money.cnn.com...on=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? Who's we? Quote Link to comment Share on other sites More sharing options...
aardvark Posted May 18, 2011 Share Posted May 18, 2011 He means himself, HE got burned in 1980 and still has nightmares about it and never shuts up about it! RB got it wrong in 1980 and has got it wrong for the last 10 years on gold. Quote Link to comment Share on other sites More sharing options...
Number79 Posted May 18, 2011 Share Posted May 18, 2011 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? It was sold over the quarter, 3 months, how many tranches do you want? Quote Link to comment Share on other sites More sharing options...
200p Posted May 19, 2011 Share Posted May 19, 2011 (edited) I wonder if he'll buy the gold stocks instead, that's if he's still bullish on the sector. Gold/Goldstocks ratio chart: stockcharts.com/c-sc/sc?s=$GOLD:GDX&p=W&b=5&g=0&i=t41797088073&r=2035 Edited May 19, 2011 by Money Spinner Quote Link to comment Share on other sites More sharing options...
200p Posted May 19, 2011 Share Posted May 19, 2011 Shock horror! Thats what he did. I can think like the elite/masters of the universe! http://www.mineweb.com/mineweb/view/mineweb/en/page103855?oid=127320&sn=Detail&pid=102055 Some of Soros gold ETF offload went into gold stocks While Soros Fund Management has exited from most of its big gold ETF holdings, it has bought into gold stock, Goldcorp, and copper-gold stock Freeport McMoran. Quote Link to comment Share on other sites More sharing options...
warpig Posted May 19, 2011 Share Posted May 19, 2011 I suspected it would be something along these lines. This is a sure indicator that gold is going much higher from here. As if we didn't know that already, but it's nice to have one of the heavy hitters on your side. 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 I think he might OG Quote Link to comment Share on other sites More sharing options...
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