Thursday 16 August 2012

Gold News............

Soros Bets Big on Gold as Prices Fall Most Since 2008

Rico Writes: I've seen this in a few places, another hedge fund giant (Paulson, I think) has put 44% into gold as well.
- Several years ago when Soros called gold the 'ultimate bubble' I figured he was 'talking his book' like many traders do....trying to jawbone the market down so he could move in the background to acquire more gold. He did so several times since.

Both of them hold what I call 'paper' gold, since they bought GLD which has no beneficial bullion to cover the paper shares they have sold.
- This makes GLD a lot like carbon credits IMO, there is nothing tangible/no substance to the shares...although they can be redeemed for paper fiat currency.

It wouldn't surprise me if both these fellows had acquired some physical bullion and have it safely tucked away and parked for security and the long-haul.
- The GLD is a convenient and easy trading vehicle for many, easy to get into/out of and is a shorter-term play.

Did you see that China has acquired quite a bit of bullion tonnage and has quietly climbed the ladder of sovereigns holding a lot of gold?
- The Chinese are smart folks and bear watching.


H/T DJ Elliott

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