In the first three months of 2016, investors bought 481 tons of gold stocks, according to the Commodity Futures Trading Commission. One of the hedge fund managers that is leading the charge on gold is the legendary philanthropists George Soros. The Soros Management Fund has more than $30 billion in assets under management, and this recent investment in gold could make that figure jump substantially by the end of 2016. George Soros is personally worth more than $24 billion, and his net worth seems to increase by the minute. Forbes has Soros pegged at number 35 on the world’s wealthiest list. All of Soros personal wealth came from investing. According to the Wall Street Journal, Soros is buying gold, and he is buying a lot of it. The Soros Fund recently bought 19 million shares of Barrick Gold. Barrick Gold is a gold mining company.
The Soros Management Fund has been busy selling stock as well as buying gold, according to a recent Wall Street Journal article. George Soros decided to reduce the Soros Management Fund’s stock holdings by 37 percent recently, but he kept some of the tech stocks that continue to keep the market alive. The 85-year-old Soros is betting that the global recession that is spreading like a will fire in Yellowstone National Park is going to bring countries around the world to their economic knees. Soros has been warning anyone that would listen that China is on the verge of a major banking meltdown and the European Union is dangling on the edge of a breakup.
Soros is convinced that the global economic meltdown is in progress, and he’s right. Countries in Europe, South America, and Asia are already experiencing economic declines, and those declines are breaking records. The banks in Italy are struggling to stay afloat, and the banks in China are carrying $2.4 trillion in bad debt on their books. The Federal Reserve has painted itself into a corner and can’t raise interest rates. Corporate profits continue to deteriorate, and even the U.S. economy is showing signs of a possible contraction next year.
The surge in gold is a typical response to shaky economic performances. Gold is one asset that is not affected by any country’s economy. Gold, as well as silver and platinum move freely and prices, change with supply and demand, unlike other commodities that are controlled by large consortiums. That’s why gold is the perfect asset to own when the stock market begins to erode. Soros and other investors say by the end of 2016 gold could be selling at more than $2,000 an ounce. That’s good news for investors like Soros, but it’s bad news for the non-investors that are going to be caught in the worst economic meltdown since 2008.
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