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Soros: Nothing Is Very Safe, Including Gold
By Dian L. Chu, Economic Forecasts & Opinions
Spot gold Tuesday hit a record $1,274.75 an ounce,drifted lower on Wednesday as the dollar surged 3% against the yen when Japan intervened in the currency market for the first time in six years. The yellow metal quickly found support at just below $1,270 an ounce, still near its record high.
Gold was also weighed down by fresh comments from billionaire financier George Soros. In an exclusive interview on Sep. 15 with Thompson Reuters (clip below), Soros says that gold is the ''ultimate bubble,' and that "this is a period of great uncertainty so nothing is very safe."
“[In a deflationary environment], Gold is the only actual bull market currently. It just made a new high yesterday. In the present circumstances that may continue. It will be very interesting to see if there is a decline in the next few weeks because practically everything that makes a new high almost immediately afterwards reverses and disappoints.”
“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.”
Soros first made the "ultimate bubble" comment on gold back in January at the World Economic Forum in Davos, Switzerland. However, his hedge fund--Soros Fund Management LLC--still held 5.24 million shares of the SPDR Gold Trust (GLD), a stake worth about $650 million, and equity holdings in miners of gold and other minerals worth almost $250 million as of June 30. Soros was the third-largest fund in the Gold Trust ETF at the end of the second quarter.
So, it seems Mr. Soros still sees upside in gold, but was warning of the metal's volatility instead of a bubble burst. Fundamentally, the current global macro environment--prospect of a synchronized slowing growth coupled with ongoing financial turmoil-- and supply/demand are also quite supportive of gold.
From a technical standpoint (see chart), $1,300 range looks to be the next resistance with support at around $1,255.
Dian L. Chu, Sep. 16, 2010
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well, I wonder if he's been purchasing gold bars or not...
Soros the genius. Says there may be a correction after a top. Wow! Could that really happen? Thank you, George. Now you can go live in North Korea's workers' paradise and get more ideas about how to screw up this country.
i'd happily be paid for my services with gold.
it would be interesting wouldn't it?
I wouldn't have scales - only krugerrands and eagles and check him with my teeth.
i suspect soros is like many old evil gits that now wants people to think he's soft and cuddly and tries not to talk total shit. it won't be the total lies that many are quite reasonably expecting.
what do him and his buddies expect? - they are scum of the earth
Fact is the wheels are coming off all those fiat ponzi paper investments and people like Soros are scared shitless,for years they have had a free ride off the backs of these "investments",they don,t want an economy where wealth is stable and the only way to earn it is to provide a product or service that contains long term value for little profit.They are all so used to manipulating this and rigging that for 2.5% that adds up to millions.And they wonder why the sheeple are saying fuck you and piling into Gold and Silver and Commodities.Like I said they are scared shitless as their power,wealth and lifestyles are at risk.Good riddens to bad rubbish.
The official Bilderberg mouthpiece is saying to you - sell me your gold.
Nice to see that most of the people understand that.
"Well, you know, I was a human being before I became a businessman"
Jim Sinclair says hang on tight ,, so thats what I do..
Soros is a snake , he goes to builderberg meetings...
round up those asses and hang 'em all ..
I'm just a dumb old truck driver. But Red George is a menace. Whereas Jim Sinclair and Harvey Organ speak with authority and sincerity, freely sharing valuable experience and insight about the gold market. The upside is Soros draws attention to gold. Corrections are corrected by stops on your mining shares. And our real metal is not for sale for many years. Fear not, boys and girls. Fear not the dementia of old hypocrites.
The mixed conflicting market signals return. It reminds me of periods in 2007/2008 during the market uncertainty and dislocation in addition to market intervention or rumours of market intervention (like the QE chatter now).
http://stockmarket618.wordpress.com
Mr Soros. It's after 5am. Gold is at 1283.60. Do you know where your physical gold is?
Soros comments might have been directed to the big shorts at JPM and GS. They are now getting their collective azzes handed to them on a platter.
Gold's lil' sister is taggin' along on the ride up... $20.80+!
Annoys the hell out of me. I'm waiting for a dip to buy a little silver miner. Where's JPM when you need him?
I don't mind Soros, I actually think he just doesn't like financial fools, and always seeks to capitalise on their foolishness. I presumed his intention was to politely warn the naive suckers who are likely all going to pile into Gold big-time for a quick buck -not the long haul- that they may have to ride a bucking bronco. When these first-time buyers panic and sell, he will then clean up (again). In his declining years, when the guilt occasionally gets to him, he feels he should at least warn folks what he thinks is coming down the road.
Buy gold -and hold it. Don't even look at the price every day or it will turn your mind to fear and greed. Gold is insurance, not currency.
Exactly!! We have a winna!
I would love to have dinner with Soros, but I wouldn't talk markets or hedge funds with him. ;)
Wouldnt breakfast be better?
Have a funny day Leo I trust you found your dip
Let me say it one more time.....in case no one has been listening.
Gold is a hedge against deflation. During inflation it is a store of value....
Enjoy trading.......the government will do anything to promote inflation..have fun trading against that!!
THINK VERY CAREFULLY ABOUT THIS QUESTIONS - " What does Mr. Soros have to gain by making this statement?"
Pre 2008, the old rules applied. Since then, what you have always believed about the laws of micro and macro economics, don't apply.
Sorass should just shut the fuck up.
WTF, he thinks the DOLLAR is safe? Because talking about the DOLLAR price of gold means you are comparing it to the fucking DOLLAR. The dollar is NOT going up, long term, ok?
This is what the deflationists just don't get: production will fall along with outstanding credit. Meaning less money to go around but LESS stuff too! Prices stay high and incomes decline. Standard supply/demand metrics! Prices CANNOT decline so long as energy's supply/demand picture is one of scarcity and contraction. This is why price trends will suggest inflation while monetarist metrics suggest deflation.
Oil is the only SAFE thing out there, but good luck stockpiling it. Seriously, if buying a property, your best bet for a farm is one which has an uneconomical gas well or coal seam on it. Something you can use but which makes no economical sense for a major to continue to produce from. Your EROI for digging something up by hand is a lot higher than it would be for a major extraction venture. Like how a mining company wouldn't care about a river that still had enough gold in it to make one person rich.
I know a guy who placer mines Dominion Creek in the Klondike. When he buys a new Cat he pays cash. I think he may buy Maui one day and retire.
You just made my day with that "Sorass".
Watch the video again with the sound off. He's lying.
I think this is the political Soros (astride a unicorn with four Left legs) speaking, not the investor/speculator Soros (a Hall of Famer by any standard) speaking.
The popularity of gold implies that people are becoming nervous about the fiat currencies of large Western nations in terms of their ability to preserve wealth. This in turn implies that faith is the governments of large Western nations is being shaken. This does not bode well for the kind of socialist, redistributive, welfare state politics that Soros actively supports since these things all rely on a large, all-powerful state in the middle of it all (run by the Obamas and Gores of the world) essentially dictating, in excruciating detail, the terms by which people live their lives. Widespread distrust of and loss of faith in central/state government kind of pulls the rug out from under all that...therefore the popularity of gold = bad.
Nothing is safe Mr. Soros, including the mandate to govern.
Soros has more money than he needs. Now he wants to be a player in the big arena of global power. But pointing out that a fast rise in price may be followed by a correction is not exactly impressive. He may be smarter to stay away from cameras and microphones. I suspect he woke up in a daze and went to school in his underwear.
Seems there are some supply issues starting on the street for gold and silver. That's what I'm hearing.
The big exchanges are freaking for lack of supply. That's the story we have yet to hear from the lame stream, ruling class media.
If the shit hits the fan and things go Mad Max or even "just" Zimbabwe or Weimar, I'd be fascinated to know how you're going to secure your horde. I know, I know--you're all rugged survivalists with super-secure complexes out in the mountains and composting toilets that grow strawberries. That's the ticket!
Anyhoo, pro-gun and pro-your-right-to-buy-anything-you-want tho' I am, I still hope you keep at least a little fiat currency in something liquid, outside your house, in case the gold thing doesn't work out. I also strongly recommend keeping the gun safe locked when you leave small kids home alone.
To the moon, bitchez?
Not even close to earth orbit. May cruise a while with the fighter jets before it gets into astronaut territory. We still have some buying opportunities before the Apollo program. What about a Moon Base for the eventual Mars shot? NASA is busy telling sweet lies to Muslims about all the scientific progress they borrowed from India, China, Constantinople, and the West. Can't be bothered with Space exploration. It's up to The Gold Bug Space Probe. I understand Jimi and Jim are waiting for us at the Mars Hotel. No coming back. Damn, I should leave the bong alone this early in the morning.
Soros speaks a basic rule of life-- nothing is safe. True and so what, it has always been true. If Soros wants to sell some of his coins, I am sure he will find someone to buy them. If he does not find a buyer, I suspect he will not brag about it.
Who cares what the hell Soros says? ABC, CBS, msnbc, Wash Post--- duh
“it may go higher but it’s certainly not safeand it’s not going to last forever.”
Yeah, tell us something we don't know.
he owns millions of the yellow metal so....enough said.
also he is right of course, nothing is safe, but he probably owns more gold then everyone who comments here combined many times over so thats a lot of risk he is taking there....lol
I don't believe Geo Soros has ever told the truth to anyone and as a classic pathological liar he likely lies to himself.
so he puts a "sell" rating on gold in hopes of buying more at a lower price. don't you people get it?
Who'd do anything but fade this criminal? Who knew Soros' real name was Schwartz?
Hot off the press:
http://incogman.net/09/2010/the-globalist-jew-soros-—-at-it-again/
I thought he was one of your kin, the Putz Family.
All you goldbugs are making me want to short gold like a mf. It's like all the housebugs that said housing would never go down. Until it does. Biotches.
wrong bitch. we are contrarians and the house bugs were perma bulls. just because the direction is up doesn't mean we are alike. We are contrarians like the bubble heads of 2002. the direction of our point of view is not relevant.
Stop yapping and put your money(?) down on a big bet against it then. I hope you can time your entry and exit nimbly.
My friend, I will. And the more everybody is piling on to one side of the trade, the better. I'll hop on and off the gold train but unlike everybody else here, I know the ride is going to end one day. I think the day is sooner than people think.
Give it everything you've got. The cartel needs some help pushing the price down. We are not getting the good buying dips we are accustomed to.
Yes, please drive down the price/oz again, so I can add to my holdings. ($1281/oz+ as I type this in...)
Excellent, I look forward to your effective subsidy when I add to my holdings.
First rule of Gold Club, Georgie - nobody talks about Gold Club.
I sincerely hope Soros is one of the first up against the wall when The Revolution comes.
So, Sirius Cybernetics Corp is missing an exec huh?
Georgie is right though, nothing is safe For instance, jumping off a sinking ship with a life preserver into a raging ocean is not safe. But would you refuse the life preserver because you might not drown right away and die of hypothermia later, or possibly will be eaten by sharks, or heaven forbid you might live long enough to be rescued, but that means going back to paying off the mortgage that's underwater.
Oh he's right. Once all this yellow metal gets in the hands of asians. They'll just do the good money for bad scam on them sending it all back to the western hemisphere. Unless of course there are serious barriers to that in the chinese, japanese, india psychology. LOL
The palindrome wouldn't speak without a call to his sons first. The book comes first.
George Soros warned of a massive house of cards with respect to derivatives when the market was hovering near its 2007 peak. Based on those comments and the comments of others to whom no one else was listening, I got out of the market at 13,500. I have never regretted listening to Soros.
+1 I agree. I have found Mr. Soros more candid than most billionare assholes and merely think that this is his way of warning of the damage that can be done in a commodity that is about to get more volitle as the worms start to shake the trees for the weak hands. My self personally my gold is in dust and nuggets found back in the early 90s for nothing more than three years of hot western sweat, blood and blisters when it was only worth <300 oz so I think Im pretty safe from a crash.LOL. Herein lies the beauty of something you would never eat. :7)
gold always worked best for me, and the entire covert group.
http://covert2.wordpress.com