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Actions of George Soros heralds the fortunes of gold; in other words, gold's future is wedded to Soros' investment decisions.At least that is how it is in the present conditions.

16 May 2013

Commodity Online
The kind of leverage that billionaire investor George Soros has on the psyche of investors is beyond comparison. When he buys gold investors too, when he sells gold investors too.

Actions of George Soros heralds the fortunes of gold; in other words, gold's future is wedded to Soros' investment decisions. At least that is how it is in the present conditions.

Soros Fund Management LLC cut short its holdings in the world's largest investment fund, the SPDR Gold Trust by 12% to 530,900 shares as of March 31. This when compared to higher amounts in investment in the fund three months earlier.

Besides, Northern Trust and BlackRock exhibited reductions of more than half even as Paulson & Co., the largest investor in SPDR held 21.8 million shares.

“Many people accumulated gold in the aftermath of the financial crisis in 2008 and with investors expecting economic improvement going forward, holdings in ETFs have more room to fall,” said Yang Xuejie, an analyst at Galaxy Futures to Bloomberg.

“There’s always some physical buying at lower prices, however, that’s not enough to take the market higher,”he noted.

Yesterday, holdings in the SPDR dropped to 1,047.13 metric tons on Wednesday. They have dipped 303.7 tons in 2013 so far.

Gold on the Comex for delivery on June 13 was seen trading at $1390.75 a loss of $5.45 or 0.39% as of 09.59 PM IST.

“It’s a very nasty time for gold investors as prices are dropping while stocks keep raging ahead,” Michael Gayed,co-portfolio manager of ATAC Inflation Rotation Fund at New York-based Pension Partners LLC said to Bloomberg.

“The emotional double whammy has accentuated the selling,” he added.


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COMMENTS (2)
Greg
18 May 2013
Sell,sell,sell. Thats all gold is about these days all the way down to $500 an once.People are foolish in the extreme to set any store by listening to these gold analysts who perpetually talk up gold. The biggest mistake is to accept what they say about the US economy and Mr Benanke,because the US economy is booming and what Mr Benanke has done by printing/borrowing money has worked despite what these foolish gold critics say. Gold is a nonsense-very poor speculative anomoly that should have no part in a modern financial system:in short,its a disaster as usual as per the same performance from 1980.
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Greg
16 May 2013
Get out of gold while you can because it is on the way to disaster.The US ECONOMY is crucial in terms of the gold price and now that it is booming with falling unemploymet,rising house prices,shale oil/gas increasing-all of these factors are very positive for the dollar and conversely disasterous for gold. Should never ever listen to these pundits saying the US is doomed and then to buy gold beause they are always wrong and you only end up losing money by listening to them. As for the US deficit-that is no way near as bad as these people make out-with an improving economy it will soon reduce over time.
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