George Soros has returned to the market of gold and is actively buying it. His gold assets nearly tripled from $52 million up to $137,3 million in Q2 2012. A representative of the London market of gold says Soros is buying securities pegged to gold. Obviously, he bets on higher gold prices. Back in September 2010, Soros said there is a speculative bubble in the market of gold and sold all of his gold assets. British experts say Soros’s return to the gold market is connected with the concerns over the destiny of the eurozone.
Billionaires Soros and Paulson seem to bet dig on gold. They increased their share in SPDR Gold Trust after the recent decline in gold prices, the biggest one since 2008. Soros doubled the share while Paulson increased it by 26%.
Gold depreciated by 4% in Q2 2012 and the price hasn’t recovered ever since.
The chart below, courtesy of , reflects the current state of affairs in the market of gold:
According to Donald Selkin, chief market strategist at National Securities, Q3 2012 is a favorable time for gold investments. More investors are betting on a gold rally.
Bloomberg has decided to compare Soros and Buffet’s investment approaches, especially as they contradict each other in some aspects. In particular, Soros is intended to sell the stocks of CVR Energy and Chevron Corp. while Buffet says energy investments are promising.
China seems to become increasingly interested in gold as well. According to Wen Jiabao, China may increase its gold reserve by 500%. The current reserve is 1054 tons (the world’s number 6 after, the US, Germany, the IMF, Italy and France).
