Soros says gold "isn't safe"

Discussion in 'Commodity Futures' started by tmarket, Sep 15, 2010.

  1. Soros says gold "isn't safe"

    Billionaire financier George Soros says that gold prices may continue to rise but warns that it's not a safe bet.
    Sept. 15 - In an exclusive interview with Chrystia Freeland, George Soros says that while gold may go higher it is the ''ultimate bubble.''

    (Reuters) - Billionaire financier George Soros said on Wednesday that gold prices might continue to rise after hitting record highs this week, but he renewed a warning that gold is the "ultimate bubble."

    With economic and fiscal weakness crimping the developed world, Soros said all investments are at risk because "this is a period of great uncertainty, so nothing is very safe."

    Regarding gold, he said that after asset classes set new highs, there are almost always immediate reversals that disappoint investors. Soros' hedge fund, Soros Fund Management LLC, has been heavily invested in gold and gold-mining companies.

    "Gold is the only actual bull market currently. It just made a new high yesterday. In the present circumstances that may continue," he said at a Reuters Newsmaker event.

    "I called gold the ultimate bubble, which means it may go higher. But it's certainly not safe and it's not going to last forever," he said.

    Soros made the "ultimate bubble comment" in January at the World Economic Forum in Davos, Switzerland. He no longer is involved in management of his hedge fund.
  2. olias


    so he's basically saying: Gold might go higher, but on the other hand, it could also go lower

    I'd like to hear the counterpoint to his assessment
  3. emg


    doomsday is coming!. my forecast for SP 500 bottom around 450-550 before spring 2011 meaning gold top near 1500oz
  4. achilles28


    Basically, Soros predicts another retreat in stocks.

    Gold has performed exceptionally well during a sustained credit contraction and deflation. That's extremely bullish for gold, imo.
  5. This gold rally is coming to a end.

    How do I know?

    The barrage of nonsense, on CNBC, Bloomberg, FOX and just about every business news outlet, pushing gold.

    It's the same feeling I got Pre-2008... when people I knew who were financial irresponsible, were getting loans for houses.
  6. businessstaxes

    businessstaxes Guest

    the reason gold oil and even stock markets are up is weakness of central bank fiat currencies. japan's 0% interest policy and US 0% interest policies...there is just mor fiat money out there..and euro can become obsolete currency.

    USD has lost 50% of value since 2000

    there is no bubble in gold or oil..the price is higher..Saudis want more money for their oil since the USD is now worth 50% less.

    people are buying gold for protection against weakness in fiat currency not speculation..etc.

  7. LEAPup


    My Barber is buying gold. I asked him if he was buying more than 5% of his portfolio in gold. He said he has close to 30% of his nestegg in gold... Take it for what it's worth.

    I don't like liberal Soros at all, but I do agree gold is a large bubble.
  8. achilles28


    Think of it this way.

    If Gold is a bubble, that means stocks are headed towards their '09 lows.

    Bernacke has made it very clear he won't let that happen. QE2 is on the doorstep.

    The market knows this and priced it in, accordingly.

    We're boxed in to the upside and downside. Hence the crap conditions.

    I think it's still prudent to own put protection or bonds, against a long portfolio. Talk is cheap. Action speak louder than words.

    At the end of the day, the markets are rigged to the upside. Like they always were. If and when we get a major selloff/crash, Bernacke will step in. Otherwise, the 4 Trillion Fed balance sheet to-date, will become worthless and their precious banks they saved will go down in flames. Anyone think Bernacke will let that happen ? Don't think so.
  9. businessstaxes

    businessstaxes Guest

    like you said it,,the markets are manipulated and rigged.

  10. achilles28


    Gold making all time highs as we speak....
    #10     Sep 15, 2010