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View Full Version : George Soros dumps U.S. equities, buys gold...



wgadget
08-18-2010, 10:59 AM
http://www.telegraph.co.uk/finance/markets/7950771/George-Soros-slashes-exposure-to-US-equities.html

The legendary investor's Soros Fund Management which has approximately $25bn (16bn) under management reduced its equity investments by 42pc to $5.1bn by the end of June, down from $8.8bn at the end of March.

The asset allocation decisions were made during a period in which the Standard & Poor's 500 index the broadest US equity index fell 12pc.

The fact that Mr Soros best known as the man reputed to have made $1bn by "breaking the Bank of England" during the 1992 fiscal crisis has decided to make such a concerted shift out of equities will send a clear message to other investors.

Gone are Soros's investments in Petrobras, Brazil's oil giant, with investments in bellwether stocks such as Wal-Mart, JP Morgan Chase and Pfizer drastically reduced, cut by 99pc, 97pc and 95pc respectively.

Of those equities that do remain, the fund's holding in a gold exchange traded fund constitutes his largest investment, some 13pc of the equity portfolio, worth $638m.

Although neither Mr Soros of his fund typically do not explain their quarterly investment decisions, it is likely some of the money has been shifted into government bonds, as well as investing in commodities and other safe havens.

The quarterly report filed with the US Securities and Exchange Commission details investments only in US-traded shares and related derivatives, and the fund does not have to detail overseas shares or cash or commodities held.

A spokesman for Mr Soros did not comment.

Silken
08-18-2010, 01:56 PM
when Soros buys gold my first reaction is :eek: SHTF could be near..

minermite
08-18-2010, 02:34 PM
Good old Mr Soros, knows what's what.

Concerned
08-18-2010, 02:44 PM
Could it be that he knows that there's no more money to be made in bonds?

I checked in my 401k: Pimco Total Return Fund has made 8.36% YTD, 12.25% in the last year, 10.99% the year before and so on. That can't last?

07Silverado
08-18-2010, 03:50 PM
First thing I think of with this "inside info" is more pump for Goldman's dump.

shamrocks33
08-18-2010, 04:08 PM
First thing I think of with this "inside info" is more pump for Goldman's dump.

Exactly, makes me think we might be in for a big correction in Oct-Nov. :rolleyes:

Got Goldies
08-18-2010, 04:11 PM
Gold ain't going much higher than it is. He is not the bunker hunt.

moonstears
08-18-2010, 04:16 PM
of new METALS buyers and need you to buy paper metal products, NOT physical metals. Supply issues for real metals is getting sticky again, I'd suspect. Soros the globalist, one world Govt, currency manipulating asshat and I hope he buys all of the paper gold, that wicked, liar, POS. BTW the US Prez is making/negotiating a loan to Petrobras,(couple BIL$, as I recall?) which looked kinda fishy, as Soros was his biggest private contributing "supporter" and also an owner of alot of Petrobras...so saying Soros sold almost all of his Petrobras, makes this interesting issue look less questionable. Read up folks, "YES WE CAN" beat the failure of fiat, BUY PHYSICAL, stock the pantry, sleep well!

http://online.wsj.com/article/SB10001424052970203863204574346610120524166.html

moonstears
08-18-2010, 04:30 PM
thanks for the post, these fellow Kitcoers collected ideas and thoughts and links help me see the bigger picture, so I commend you all !

AvergageJoe
08-19-2010, 11:27 AM
This whole thing with Soros buying gold troubles me (as does the Jim Cramer and GS calls to buy gold). Cramer is just an idiot loudmouth as far as I am concerned, so he bugs me the least.

I was thinking why would Soros do this, and also make it widely known? A lot of you are speculating the dump/correction scenario and you could be right. But I had a more sobering thought this morning...

Soros purchased a gold ETF and announced it, so presumably large numbers of people will also pile into a gold ETF. But what if Soros has quietly been amassing the same (or larger) size in physical gold? Could it be that Soros is going to do something that actually causes a COMEX default? Think about what he accomplishes:

1) All the suckers that followed him into the ETF will be wiped out. You all know it's widely rumored that there is not enough physical behind the ETF's. The best you could hope for would be to settle for cash.
2) COMEX crashes, so physical skyrockets. Assuming his ETF and physical holdings were equal, and the price of physical quadruples he would be sitting pretty.
3) He may still be able to settle for cash like everyone in number 1, but he could also sue the ETF for fraud, which could net him even more. Plus he'd get a writeoff on the ETF loss.

Not saying this will happen, but it gave me a little chill when I thought about it... :(

Comments?

Silken
08-19-2010, 01:23 PM
of new METALS buyers and need you to buy paper metal products, NOT physical metals. Supply issues for real metals is getting sticky again, I'd suspect. Soros the globalist, one world Govt, currency manipulating asshat and I hope he buys all of the paper gold, that wicked, liar, POS. BTW the US Prez is making/negotiating a loan to Petrobras,(couple BIL$, as I recall?) which looked kinda fishy, as Soros was his biggest private contributing "supporter" and also an owner of alot of Petrobras...so saying Soros sold almost all of his Petrobras, makes this interesting issue look less questionable. Read up folks, "YES WE CAN" beat the failure of fiat, BUY PHYSICAL, stock the pantry, sleep well!

http://online.wsj.com/article/SB10001424052970203863204574346610120524166.html

ah!! a paper pump not a physical pump... makes sense..

Concerned
08-19-2010, 01:48 PM
This whole thing with Soros buying gold troubles me (as does the Jim Cramer and GS calls to buy gold). Cramer is just an idiot loudmouth as far as I am concerned, so he bugs me the least.

I was thinking why would Soros do this, and also make it widely known? A lot of you are speculating the dump/correction scenario and you could be right. But I had a more sobering thought this morning...

Soros purchased a gold ETF and announced it, so presumably large numbers of people will also pile into a gold ETF. But what if Soros has quietly been amassing the same (or larger) size in physical gold? Could it be that Soros is going to do something that actually causes a COMEX default? Think about what he accomplishes:

1) All the suckers that followed him into the ETF will be wiped out. You all know it's widely rumored that there is not enough physical behind the ETF's. The best you could hope for would be to settle for cash.
2) COMEX crashes, so physical skyrockets. Assuming his ETF and physical holdings were equal, and the price of physical quadruples he would be sitting pretty.
3) He may still be able to settle for cash like everyone in number 1, but he could also sue the ETF for fraud, which could net him even more. Plus he'd get a writeoff on the ETF loss.

Not saying this will happen, but it gave me a little chill when I thought about it... :(

Comments?

Interesting thought. He did bet against the Bank of England ....and won!
This battle would be bigger, but he's got more money now.

Got Goldies
08-19-2010, 01:50 PM
Soros buys Gold and its no higher than yesterday. But DOW is down 200.