George Soros Loading Up With Gold
Billionaire George Soros has recently sold more than a million shares of major financial companies including JP Morgan, Goldman Sachs, and Citigroup, valued at 50 million dollars. While George Soros is well known for his donations to foundations that often undermine the American way, one has to take notice when a powerful insider takes such drastic financial action.
What has he done with the money he has withdrawn from the stock market? He has invested it in GOLD. Soros Fund Management has doubled its position in the SPDR Gold Trust (GLD) to nearly 900,000 shares. That’s nearly 150 million dollars. What’s going on? What does he know? Is a major financial collapse eminent?
Back in April of 2011, I wrote an article titled Government Shutdown, a Soros Diversion, Bretton Woods II! in which a George Soros sponsored event, Bretton Woods II economic conference, which took place at the Omni Mount Washington Resort in Bretton Woods, New Hampshire, was outlined with a mission to change the global economy in one event.
Weeks later I highlighted in an article, Bretton Woods II, Results Are IN, that immediately following the conference, Brazil, Russia, India, China, and South Africa (the BRICS) met for a summit, calling for ‘a restructuring of the World War II-era global financial system and an eventual end to the long reign of the U.S. dollar as the world’s reserve currency.‘
Could the implementation of the non-reported Bretton Woods II be on our doorstep? Could a major global financial collapse usher in a new world currency, partially backed by gold? Could this be why Soros and others are falling over themselves for gold? (John Paulson just increased gold holdings to $700 million, central banks buying gold, China amassing gold)
I’m just putting it out there for your consumption that this might be a further indication that something BIG may be about to happen in the financial world.
Be aware and be prepared.
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he’s buying a paper product that he can trade out of quickly if gold or GLD start moving. if the markets tank, he’ll be holding a (valueless) paper asset that is branded to weather sovereign risk with a ready pool of idiots waiting to buy up whatever he moves.
smart money tells you one thing and does another. figure out what the next move is. don’t worry about the one he announced already.
The point is, he has evidently moved out of ‘financials’ and is into gold (a safe haven). Given the teetering global economic climate, it is interesting indeed.
Not a safe haven if TSHTF. He doesn’t have the gold. He has paper saying he owns the gold. Hope the paper is soft and absorbent.
I have never understood the desire to have gold in hand. I can imagine bartering for a meal when all you have is a bunch or 1 gram, the smallest I am aware of, bars (a bit over $62 + shipping today per your newest sponsor). Gives a whole new meaning to “Do you want fries with that?” As an aside, the new sponsor has good prices and policies.
Silver coin make more sense to me. Preferably from the US(or wherever you live). Most people don’t know what percentage is silver. I also don’t care if the coins are pretty.
Be well.
It’s not a safe haven (GLD, being a paper representation of supposed actual physical in a vault somewhere) if the entire system crashes and burns in total. If that happens, we are all entirely screwed. Some will make it better than others depending on preparations, etc… However having physical gold (or silver) in that example will ensure (probably) a transfer of that ‘wealth’ to whatever new system develops on the other side, whenever that happens. If there is partial collapse (depending on the definition of ‘partial’ and what exactly it is that collapses), then an ETF like GLD will probably do extraordinarily well as investors often flock to things like gold as a safe haven compared to stocks and other investments (this is not financial advice). I find it notable that someone like Soros (and others of late) are investing heavily in gold. It seems they are hedging their bets, so to speak, against the current financial system as is. No surprise to me personally (I’ve seen something coming for quite some time, as I’m sure others have), but when money like this starts to fly, it raises an eyebrow.
@All; I would have to agree with Ken about it being a RELATIVELY safe haven, especially for the ultra wealthy. While the “shares” are paper, they are backed by assets. People like Soros don’t buy pigs in a poke. IF EVERYTHING dies and burns down to the “Mad Max” dystopian version of the future, then yes you are right, he’s screwed. However, the ultra rich have contacts and means that we don’t, even in SHTF. Even in a very bad situation, Soros will have his paper and he will also have the wherewithall to actually show up and “collect his gold” (or other assets), which is the contract you buy. He will have the means to cross the world to collect, while if you or I bought GLD, we wouldn’t have a chance in hell of collecting for quite some time, if at all, since we can’t get there. People like him will be the progenitors of the NEW monetary system that comes about and they aren’t going to lose money. As far as Mortimer’s thoughts on gold, I have both as they have two different purposes on one hand and the same purpose on the other. In reverse order, they are both of value and can be used for preserving your wealth but gold is the better item for DENSITY of wealth with a 60:1 ratio of silver to gold. The other is that they can BOTH be used for purchasing and buying but obviously gold is cumbersome for small purchases whereas silver is a more day to day PM. I think after some usage of PMs as a monetary system, there will be change available in circulation for small gold pieces in silver (e.g. a 1/10th Gold Eagle is worth about $160 and the equivalent in silver is 23 quarters or 5 silver dollars and 2 quarters and 2 dimes….these are rough numbers without looking them up but they should be close). One thing you should have is a scale (mechanical, a reloading scale will work) and a written list of all major U.S. coinage, weights and sizes, and gold coin weights and measures as well. You should also have a set of DIAL calipers to measure them with to compare with your coin stats to make sure you’re getting the real deal. I am buying “exemplars” of particular coins to keep for certifying coins as real as I think counterfeiting will be commonplace after a while of PM usage. Anything having to do with investments in HARD commodities will prolly survive MOST SHTF scenarios, at least for the ultra wealthy, in the fullness of time. Survive well. Enjoy.
Let’s add John Paulson and Jacob Rothschild to Soro’s buddies betting a financial crash is imminent. They too have positioned themselves in massive gold buying and pulled back from financial investments (others of late).
@ Chiller
Those fellows did indeed join Soros in the GLD positions BUT;
$150 mm out of portfolios in the 20-50 Billion dollar range? That is around 1% to .01% of their portfolios. To you and me, it is a lot of money but to these guys. Imho, it is a diversion play for the uninitiated.
Most Pro Money Managers suggest 5-10% of a portfolio in GLD. 20% of Soros’s portfolio would be about 2.0 Billion from last I can recall and Forbes.
Paulson is worth $12.5 Billion (#45 Forbes list) so his buy is not in line with someone looking for security either.
He did just plop down $49 Mil for a BOL in CO though.
http://www.forbes.com/sites/morganbrennan/2012/06/05/billionaire-john-paulson-confirms-his-purchase-of-hala-ranch-for-49-million/
Rothschild is worth $50 Billion, again, his GLD buy is beer money.
Nope, these guys, all part of TPTB, are using this as a parry left as they thrust right, imho.
Not to say they won’t make money on it as they are the lever pullers. I also keep in mind that who knows, they may have secretly already piled into physical.
Agree for the most part. Paulson has over 21 million shares total of GLD @ $156 a share for over $3.3 billion, more than 25% of his net worth. Like Ken said, it’s not so much the gold they’re buying but their shunning of the financial markets that’s so striking. I personally could care less what they are worth or invest in. But the ego’s of these miscreants place them in constant competition with each other and even a small loss is mocked and ridiculed by their peers. They are not philanthropic, just the purest and most quintessential form of greed.