By David Lew
Wise investors make money in gloom and boom. The best example for the wisest among investors is, perhaps, the billionaire global investor and fund manager George Soros. Soros recently predicted that gold—the hottest commodity on earth—is the biggest asset bubble. And Soros is piling his money into gold!

Why is George Soros pouring money into Gold when he is forecasting that the yellow metal is the ultimate asset bubble? Unlike many of us, Soros is a wise and clever investor. Soros is in fact making money out of his investment in gold, and he knows that the bubble bursts when it becomes too huge a balloon, and thus gold price is going to surge before it bursts.

Bullion dealers and several global fund managers say that George Soros is investing lots of money into gold these days. Soros Fund Management LLC, one of the most successful global funds managed by George Soros, has been aggressively investing in gold funds in the last one year. In fact, the Soros Fund Management increased its investment in SPDR Gold Trust, the biggest global gold-backed exchange fund by a whopping 152 percent in the last quarter of 2009.

Noted bullion analyst Mark Robinson offers several reasons as to why George Soros is benefiting out of gold bubble. “You need to study the great investor George Soros when it comes to gold investments. He has been consistently predicting that gold price is the ultimate asset bubble ever since the yellow metal zoomed to touch a historic high of $1227 per ounce last December,” he says Robinson.

“But at the same time, George Soros has been investing lots of money into gold and gold funds in the last one year. It is interesting that Soros is buying into gold even as he continues to harp on the gold bubble talk,” says Robinson.

Robinson feels that Soros, being an astute investor knows well that gold price is not going to burst at the current $1100 per ounce price. “Gold price will continue to balloon for some more months and there is a real possibility that if the current pitiable situation of the US dollar and the Euro continues, yellow metal price will surge to a record of $1,500 or more this year,” he says.

“Soros feels that Gold price will burst at or around $2,000 per ounce only. So during this bubble period, there is lot of money to be made if you continue to buy gold diligently. Soros is just doing that,” Robinson added.

It looks to be a sound reasoning from Robinson; but several bullion dealers and analysts say the whole bullion market across the world turned panicky when Soros made the loud comment that gold price is the ultimate bubble. Soros made the controversial comment during a speech that he made at the World Economic Forum at Davos last month.

So are the global investors like George Soros making lots of money out of the gold bubble talks? We have been listening to investors and commodities investing advisors like Jim Rogers, Marc Faber, John Paulson, Paul Tudor Jones and David Einhorn on buying and selling the hottest commodity—gold.

While Jim Rogers has been consistently arguing that gold price will surge to touch $2,000 per ounce this decade, Marc Faber has been advising investors to buy gold and dump currencies like the US dollar and Euro. Investors like John Paulson, Paul Tudor Jones and David Einhorn have reaped big money out of gold in the last two years by meticulously buying into gold against the US dollar.

All these renowned global investors have made money out of gold. And all of them remain bullish on gold despite the fear in bullion market that yellow metal is a bubble about to burst and gold price will plunge below $1,000 per ounce.

May be, as gold investors, you need to study a lot on the fine art of making money out of investing in gold and gold funds from astute investors like George Soros, Jim Rogers, Marc Faber, like John Paulson, Paul Tudor Jones and David Einhorn.

David Lew is a precious metals commentator with CommodityOnline. You can contact him at info@commodityonline.com

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