Thread: Why Are George Soros and John Paulson Buying Up So Much Gold?

'In a harbinger of what may be coming our way in the Fall of 2012, billionaire financier George Soros has sold all of his equity positions in major financial stocks according to a 13-F report filedwith the SEC for the quarter ending June 30, 2012.

Soros, who manages funds through various accounts in the US and the Cayman Islands, has reportedly unloaded over one million shares of stock in financial companies and banks that include Citigroup (420,000 shares), JP Morgan (701,400 shares) and Goldman Sachs (120,000 shares). The total value of the stock sales amounts to nearly $50 million.

What’s equally as interesting as his sale of major financials is where Soros has shifted his money. At the same time he was selling bank stocks, he was acquiring some 884,000 shares (approx. $130 million) of Gold via the SPDR Gold Trust.'...

...But he is not the only one that has been busy accumulating gold.

Billionaire John Paulson (the one that made 20 billion dollars on the subprime mortgage meltdown) has been buying gold like crazy and his company now “has 44 percent of its $24 billion fund exposed to bullion.”'

Why Are George Soros and John Paulson Buying Up So Much Gold? (NYSEARCA:GLD, NYSEARCA:SLV, NYSEARCA:IAU, NYSEARCA:PHYS, NYSEARCA:AGQ) | ETF DAILY NEWS

They are legendary investors and aren't ignorant of our monetary base.

Originally Posted by Bigfoot 88

They are legendary investors and aren't ignorant of our monetary base.

You free traders destroyed the dollar, congratulations.

Originally Posted by Matt Foley

You free traders destroyed the dollar, congratulations.

That doesn't make any sense.

It has to do with the likely adoption of Bass III, which essentially makes gold money again in the sense it can be held as bank reserves. They are required to hold a certain amount of "zero-percent risk" items, and gold bullion was added to the list under cash. I foresee a bull market in gold in the near future.

You have George Soros, a huge progressive who is supposed to believe in the dollar as great, investing in gold. And people still think the dollar is good money? Come on folks, it isn't that hard to reason through...

the dollar is still good money, lol. If you don't believe it is then please send it to me, I will gladly take it.

Shifting from stocks to gold is more an indication that the banks, once again, are in trouble.

Meanwhile in the money markets the dollar is incredibly strong and gaining against most currencies.

Originally Posted by JP Hochbaum

the dollar is still good money, lol. If you don't believe it is then please send it to me, I will gladly take it.

Shifting from stocks to gold is more an indication that the banks, once again, are in trouble.

Meanwhile in the money markets the dollar is incredibly strong and gaining against most currencies.

Its not exactly against anything that is able to keep its value. Just sayin'

Originally Posted by DA60

'In a harbinger of what may be coming our way in the Fall of 2012, billionaire financier George Soros has sold all of his equity positions in major financial stocks according to a 13-F report filedwith the SEC for the quarter ending June 30, 2012.

Soros, who manages funds through various accounts in the US and the Cayman Islands, has reportedly unloaded over one million shares of stock in financial companies and banks that include Citigroup (420,000 shares), JP Morgan (701,400 shares) and Goldman Sachs (120,000 shares). The total value of the stock sales amounts to nearly $50 million.

What’s equally as interesting as his sale of major financials is where Soros has shifted his money. At the same time he was selling bank stocks, he was acquiring some 884,000 shares (approx. $130 million) of Gold via the SPDR Gold Trust.'...

...But he is not the only one that has been busy accumulating gold.

Billionaire John Paulson (the one that made 20 billion dollars on the subprime mortgage meltdown) has been buying gold like crazy and his company now “has 44 percent of its $24 billion fund exposed to bullion.”'

Why Are George Soros and John Paulson Buying Up So Much Gold? (NYSEARCA:GLD, NYSEARCA:SLV, NYSEARCA:IAU, NYSEARCA:PHYS, NYSEARCA:AGQ) | ETF DAILY NEWS

They are buying gold because, as we uncover just how corrupt the stock market is, they know that it's nearing the end of the song.

Once the music stops playing then anything written on a piece of paper will be worth the paper it's written on; including stocks, bonds, mortgages, insurance, bank accounts, dollar bills, etc...

So, once the hyper inflation hits, gold will be among the few things that will hold their value until a new currency comes around.

It's just the way it is... And these people are among those that see the writing on the wall.

Originally Posted by JP Hochbaum

the dollar is still good money, lol. If you don't believe it is then please send it to me, I will gladly take it.

Shifting from stocks to gold is more an indication that the banks, once again, are in trouble.

Meanwhile in the money markets the dollar is incredibly strong and gaining against most currencies.

In early 2002, the dollar index was over 120...today it is 82.55.

Ten years ago, gold was just over $300...today it's $1616.30.

United States Dollar Index (DXY)

Gold Price History


The dollar is rising because it is a short term safe haven when things are bad.

But, the overall trend is for the dollar to lose value as America's fiscal situation continues to deteriorate.

Soros would (IMO) not be buying gold if he thought the U.S. dollar was looking to rebound as they (gold/dollar) almost always act in reverse for at least the last decade.

Because gold is decided to replace failing fiat currencies such as the euro and the USD. They prepare for WW3.