Opposite to Soros, Rothschild buys Gold!
It is now reported that the Rothschild group are buying gold. Lord Jacob Rothschild expressed his concerns regarding the stability of world markets, and stressed that in such turbulent and unpredictable situations, the preservation of capital becomes top priority – presumably more important than achieving a return on it! He has therefore sold part of his equities’ and placed the money in gold.
This is all very interesting, as a few days ago we pointed out that George Soros, who bought lots of Gold at the beginning of the year was reported to have unloaded his gold holdings and gone short on practically everything including equities and the SP500 index. Continue reading “Opposite to Soros, Rothschild buys Gold!”
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IS SOROS PLAYING GOLD?
George Soros, the Hungarian/American billionaire investor/political activist is as controversial as they come. He became famous, and a lot richer, when he sold the Pound Sterling short in 1992 and received the title “The Man Who Broke The Bank of England”. He also contributed to the currency crisis of 1997 in South East Asia. And a few months ago, stated that the Chinese Yuan is overpriced and due for a correction.
More recently, Soros was in the news buying huge amounts of gold, including gold mining shares and gold futures. Yesterday, he sold off his gold holdings! Is gold going down the drain?
Possibly, but the market still seems to be bullish on gold. Not to mention that Russia and China have been stocking up huge quantities of gold for over a year now, to reduce their reliance on the US Dollar as reserve currency.
With the reluctance of the US Fed to raise interest rates, probably till the end of 2016 or even till Q1 2017, and with the world political tensions rising at an accelerating pace, one would expect gold to remain in demand as a safe haven.
Then, what is Soros doing selling gold? Profit taking? Possibly, but let us not forget that he is basically a trader and his forte is shorting. Traders have an itch to alternate between bullish and bearish positions, and the bigger and louder they are, the more likely they are to impact the market in their direction – even if only in the short term.
It may not be wrong in the short term, to follow closely in the steps of Soros, the Wizard, but hope he doesn’t veer unbeknownst to us.