George Soros not only doubled his gold investment, but also bought call options

George Soros: “The ultimate asset bubble is gold.

The ultimate liar is an elite financier.

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George Soros doubled his investment in the world’s largest gold fund – just weeks before claiming investing in the precious metal is now the “ultimate bubble”.

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George Soros buys gold despite dubbing it ‘ultimate bubble’

Mr Soros – a legend in investing circles for his $10bn (£6.37bn) bet against the pound in 1992 which forced sterling out of the European exchange rate mechanism – increased his stake in the SPDR Gold Trust in the last quarter of 2009.

Regulatory filings show that his $8.8bn investment vehicle, Soros Fund Management, raised its stake in exchange-traded fund SPDR by 3.7m shares to 6.2m shares in the three months ending December 31, 2009.

George Soros More Than Doubled Gold ETF Stake in 4th Quarter (Bloomberg)

The new shares were bought at a price of $421m, taking his total holding in the fund to $663m at the end of December.

In addition, Mr Soros’s investment vehicle owns 11,000 call options that will permit it to buy an extra 1.1m shares should gold prices move higher.

Soros Fund Management also increased its stake in Canadian-based gold producer Yamana Gold, buying 60,880 shares to take its total position to 85,880 shares, worth $973,314 at the end of December.

However, the actions of the Mr Soros’s investment fund however seem to be at odds with his own viewpoint. During the World Economic Forum in Davos in late January, Mr Soros said: “When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.”

Gold hit a new high of just over $1,225 an ounce in December, having rise 40pc in the prior 12 months, and touched an all-time high in euros of €818 an ounce earlier this week. On Wednesday, gold was trading in New York at $1,115.55 an ounce, having hit a one-month high of $1,126.85 earlier in the day.

Mr Soros is not alone in increasing his stake in the SPDR, with new filings also showing that China Investment Corporation (CIC), Beijing’s main overseas investment fund, taking a 0.4pc stake in the fund worth $155.6m.

CIC’s investment is equivalent to just 0.4pc of the 33.9m ounces of gold maintained by the Chinese government, but is part of a growing trend of major funds investing in the metal.

The World Gold Council said on Wednesday that pension funds began actively investing in gold last year, viewing the metal as a long-term safe haven.

Aram Shishmanian, the council’s chief executive, told Reuters that although the organisation does not forecast prices, he believes the gold market will be “robust’ in 2010 in spite of an 11pc global drop in demand last year because of weaker industrial output.

By James Quinn, US Business Editor
Published: 10:44PM GMT 17 Feb 2010

Source: The Telegraph

2 thoughts on “George Soros not only doubled his gold investment, but also bought call options

  1. G’Day

    It is a bit steep calling Mr Soros a liar, from what I see he has been misinterpreted.

    One thing I have noticed is that elite financiers basically tell you out right what they are going to do, Mr Soros is no different. Push through the media opinion and analyse it yourself for example here is Mr Soro’s quote for gold.

    “When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.”

    What he is saying is yes gold is the ultimate asset bubble and it has just started to develop. Get on it before it before you miss the boat.

    Regards
    Paul Omanski
    Oman Financial Investment Fund

  2. Like him or hate him. This guy has done extremely well with his Gold trades.

    June 2016 he dumped his Paper Gold at the top of the market.

    November 2016 he just doubled down on Barrick Gold.

    Looks likes he is moving back into physical Gold.

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