agaiziunas
Member
- Joined
- Jan 5, 2008
- Messages
- 326
So here we have two billionaires, both with pretty horrible track records when it comes to dealing with precious metals.
Soros sold off a lot of his GLD shares a few years ago when gold was $1,275/oz, stating "This is the biggest asset bubble yet...".. Paulson's gold-focused hedge funds have lost 23% of their value just this year.
Now all of a sudden, Soros unloads his positions in banks like JPMorgan, BoA, and throws the proceeds into the GLD ETF nearly tripling his position. Paulson, the largest single holder of the GLD ETF doubles down and now nearly half of his $20B portfolio is in GLD.
Either:
a) These well-connected currency manipulators and opportunistic profiteers know something we don't, and are shoring up...
b) All the rumors of the SPDR Gold Trust not having anywhere near the amount of physical gold in its London HSBC vault as represented by shares outstanding are true, and a few major investors are buying in to maintain the illusion so they can unwind their positions at a better price after QE3 or frenzied "follow the billionaire investor" boost
Wow... could mean huge bump or crash of gold prices coming up in the next 12-18 months. $1,000 or $3,000, impossible to tell which, either one likely.
But one sure take-away: "paper" gold is very dangerous. If anyone has ever read the SPDR Gold Trust prospectus, the gold they are "supposed to have" is NOT insured, nor is the trust liable for theft, loss, or even FRAUD. Scary stuff. But I think most folks on this forum would be smart enough not to trust ETF instruments where you and your gold are 20 steps apart.
I like the mining stocks myself... much bigger swings based on the commodity price to write & sell contracts & squeeze out cash based on the volatility while owning long term. It's like the Ron Paul portfolio on steroids.
Soros sold off a lot of his GLD shares a few years ago when gold was $1,275/oz, stating "This is the biggest asset bubble yet...".. Paulson's gold-focused hedge funds have lost 23% of their value just this year.
Now all of a sudden, Soros unloads his positions in banks like JPMorgan, BoA, and throws the proceeds into the GLD ETF nearly tripling his position. Paulson, the largest single holder of the GLD ETF doubles down and now nearly half of his $20B portfolio is in GLD.
Either:
a) These well-connected currency manipulators and opportunistic profiteers know something we don't, and are shoring up...
b) All the rumors of the SPDR Gold Trust not having anywhere near the amount of physical gold in its London HSBC vault as represented by shares outstanding are true, and a few major investors are buying in to maintain the illusion so they can unwind their positions at a better price after QE3 or frenzied "follow the billionaire investor" boost
Wow... could mean huge bump or crash of gold prices coming up in the next 12-18 months. $1,000 or $3,000, impossible to tell which, either one likely.
But one sure take-away: "paper" gold is very dangerous. If anyone has ever read the SPDR Gold Trust prospectus, the gold they are "supposed to have" is NOT insured, nor is the trust liable for theft, loss, or even FRAUD. Scary stuff. But I think most folks on this forum would be smart enough not to trust ETF instruments where you and your gold are 20 steps apart.
I like the mining stocks myself... much bigger swings based on the commodity price to write & sell contracts & squeeze out cash based on the volatility while owning long term. It's like the Ron Paul portfolio on steroids.
