Gold Bubble – It is Still Inflating (NYSE: AUY), (NYSE: ABX), (NYSE: GG), (NYSE: GLD)
If a famous hedge fund manager (George Soros) is buying gold, would you? Queue up some shares of Yamana Gold Inc. (USA) (NYSE:AUY), Barrick Gold Corporation (USA) (NYSE:ABX), Goldcorp Inc. (USA) (NYSE:GG) or SPDR Gold Trust (ETF) (NYSE:GLD). Soros seems to recognize there is a bubble in gold, but he is still willing to bet on it.
Christopher Glynn reports that a bubble in gold is certain, but George Soros is betting big on the precious metal.
“The ultimate asset bubble is gold,” hedge fund legend Soros told the audience at the World Economic Forum in January.
Yet Soros, 80, upped its investment in SPDR Gold Trust, an exchange traded fund invested in gold, 150% in the fourth quarter, according to a filing.
Soros is head of Soros Fund Management, a $25 billion hedge fund headquartered in New York. In addition to his market prescience—Soros in 2008 predicted a worldwide financial crisis—he is known for his philanthropy and political activism.
Though not an outspoken hedge fund “gold bug,” like David Einhorn, John Paulson or Paul Tudor Jones, Soros, his latest filing revealed, is the fourth largest investor in SPDR Gold Trust. Paulson & Co., headed by Paulson is the largest stakeholder.
Gold has been heralded as a hedge against inflation. Despite its popularity among the hedge fund elite, the precious metal has been subject to its detraction. Julian Robertson, a hedge fund legend in his own right, has downplayed gold as a viable hedge.