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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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Normally I do not engage in name calling but Soros is a lying, cheating, sociopathic megalomaniac with the honor of a garden slug and the diginity of a rotten egg.
He's going to hell and it doesn't matter if you believe in hell or not, he's going there.
There is the possibility he may come to worship himself with such intensity, that he implodes. But it's a mighty thin stretch....
Soros never speaks without the intent of making money for himself. Sounds like he has a big gold short on and he's getting his ass kicked. Shorting Gold and Treasuries is going to make some very rich people very poor.
The old fart wants to dupe everyone!
He's eligible to run a central bank uttering such a wonderfully conflicting quote that in the end says nothing. At its best, life is uncertain, and in these days of "great uncertainty" is when gold shines. So until everybody feels a bit more comfortable, shall we say, with the global scheme of things, it's as good, if not better than anything else.
"On a long enough timeline, the survival rate for everyone drops to zero!" -- there's your "certainty!"
Does anyone else think what Soros says is absolute crap?
Yes; I think what he said is absolute crap.
Yeah, Soros spews crap out of his mouth. Everything he says is designed to influence the sheep to get in the chute and line up to get sheared.
Yes it is crap considering Soros is 104 years old and wears a diaper to shit in!
That was one of the worst quotes in the history of quotes. First of all gold can be forever. He knows this, you know this, your mom knows this, we all know this. Gold lasts as long as you can hold it and longer. Also, Georgie owns lots of gold via GLD, which will prove fruitless unless GS and the other main proprietors yield him a share of the physical. Most likely he will be paid along with many of the other GLD holders, in FIAT bancor credits, and keep other gold in vaults marked SOROS'. Lastly, his little trick with words, ultimate, ultimate means final. It will be the final bubble.
"Not safe..." What blatant fear mongering! By definition, "not safe" could mean anything. It could mean that Barry Sotero is going to make what would be the biggest mistake of his political career and try and confiscate gold. First, due to such recognition of its value, the price would skyrocket. Second, those holding it would not give it up willingly, and that would mean whatever troops the Fed could muster would be tripping over themselves trying to get it. Sure they could get some out of bank "safety" deposit boxes (there is that word again for you!), but would they get it if you had it?
Soros only questions gold here too. Everybody is talking about gold now and Soros only questions it in the near term. This on technical ananysis or what? Because it has reached a nominal high? How is this news?
What does the decay rate of gold atoms (and they do decay, on a Universal time scale) have to do with whether or not gold is in a bubble? Do markets work with everything else but not gold?
Ok, so Soros wasn't talking about a decay rate, but I was. And it does matter. The market is based on gold. What is your point?
The market for gold is based on gold?
What are you talking about?
Wanker.
...when everyone talks about gold now, beware the dotcom ghosts.
Soro's and Paulson dumped millions into NG a few weeks back, so I appreciate his concern.(LOL)
He is the single largest contributor to the takeover situation in the USA now.(Progressive/Alinksky tactics).Just like an Alabama tick.
There's not one Progressive,Socialist organization, he has not, and still is sending millions to on a regular basis.He is so deep in bed with the Manchruian Candiates admin, and it's policies, he should be hung,and /or jailed................If he were American.
He is right about one thing, (Duh!), nothing is safe now............why does he think PM's are off the wall,because even with the risk factor, they are the last line of defense.
Soros is corrupt. Anything coming from his mouth should be instantly vetted. I just hope when we go super nova, this pos gets his.
Aren't Treasuries in a bull market too? I mean, we have record low rates all across the yield curve...doesn't that mean Treasuries have experienced a long bull market that has finally peaked?
Isn't THIS the bubble that Soros should be warning us about?
No, because Soros is BUYING gold in his fund. He is talking his book. Ignore that wiezened, obfuscating gargoyle.
Congrats truont...I scrolled down this far waiting for someone to mention that Soros conviently left out the coming fiasco in bonds.
"A bubble that doesn't pop is called 'money'." And at the end of the fiat era, gold will be money once again. Better get you some before the "Nash Equilibrium" asserts itself:
http://www.safehaven.com/article/5205/why-the-global-financial-system-is...
OH JESUS! Now I get it. Now I see how the mental Three-Card Monty the gold-hawkers have pulled on you guys.
You figure that because commodities used to be valued against gold that if gold becomes money again it will have an absolute rather than a relative value.
Oh boy. Wow. If you really believe that you are in for a hell of a shock.
News Flash: Gold has ALWAYS gone up and down in value. The Rothschilds nearly lost their fortune speculating on the price of bullion - even though bullion was the reference commodity for international trade. You've got to remember that in the days that gold was money most trade was still largely barter. It was only a small percentage of world GDP that was traded in the way we think of goods' being traded today.
Gold has NEVER, EVER had a stable price - that's why governments finally declared fixed exchange rates. A fixed price for gold relative to other commodities was a GOVERNMENT action, not the action of the market.
It's a good thing you don't buy gold, because you really don't know anything about it. I can only wonder why you care what others do.
NEWS FLASH: Gold was always money, real money, held as central bank reserves. Still is.
NEWS FLASH: Gold always has a stable VALUE, the instability is in the price of fiat currencies which bounce like rubber balls. Today you are rich in paper currency, tomorrow broke. Have fun playing that game.
NEWS FLASH: We don't need a fixed gold price. Fiat money is fully convertable to gold, at the floating (true) price of gold.
WHICH "true" price of gold is that?
London? Sydney? Hong Kong? New York?
At the warehouse? Which warehouse? In what country? At the assayer? Which assayer? In what denomination? At the smelter? For lease? As collateral? As a promise to pay? When delivered? Before or after assay? In escrow?
You do realize that the gold market is now and has always been subject to massive arbitrage, right?
Your question is foolish.The price of gold is not the price of paper gold. Do you pay the same for a gallon of milk in Hawaii as Russia as Wisconsin? No. But when you buy it, you establish the price. Why is this concept difficult for you? The price of gold is the price to buy PHYSICAL GOLD. It varies somewhat from country to country, even dealer to dealer. Forget your stupid 'paper market price'. There is a real price to real things. The real world does not have one price.
Paper gold? I'm talking about physical gold.
One of the reasons physical gold is difficult to use as money is that it's very easy for very large arbitrages to develop in between markets. When gold was used as currency, speculators constantly manipulated prices by very large increments by creating artificial shortage and surplus.
You write that: "The price of gold is the price to buy PHYSICAL GOLD" - but that implies that people use and accept book-entry (a/k/a "fiat") tender rather than demanding settlement in physical gold. If book-entry tender is accepted for exchange then prices are determined in a book-entry (fiat) system, not a physical specie system.
So little johnny went AWOL and you are now sitting at his terminal. 4 week and 4 days. STFU
Any relation to Johnny Bravo? Lol I came here hoping for words of wisdom from the MAN himself. JB where are you? Helloo?
right after i posted i saw yours. great mjinds think alike Ha ha
Yep, here we go again. I'm tired just reading his shit. Fuck him, let him blather. I'm tired of trying to convince people and it's time that ZH put up a "Primer" window for the dullards who can't pleasantly reply to points of view. Or then again... Fuck 'em.
Gold is money, it never stopped being money. It stopped being currency. You can use fiat as currency and gold as money. The Euro already does this. Look at the ECB balance sheet, they mark gold to market every quarter. Look at their reserves; gold has gone from about 30% of reserves to 60% since the Euro started while the amount of gold owned has not gone up. Do you see? Gold is their money, the euro is their currency. Go look.
http://www.ecb.int/press/pr/wfs/2010/html/fs100707.en.html
So the ECB has gold on its balance sheet? So what? They settle in book-entry fiat, not gold. Their gold is just a small portion of their core holdings.
Once you use fiat or book-entry currency, then (by your weird standard) we can call "money" whatever we want but it doesn't matter, though, does it?
What matters is settlement, not covertability. Whatever constitutes settlement is money.
"What matters is settlement, not covertability. Whatever constitutes settlement is money".
And what do you envision the US with its debt and the the banks with their OTC derivetives settle their debts in? More dollars?
The US pays for their imports with unconvertable (redemable) dollars, an IOU. What will they settle with, if not gold? Real estate? China tried that road. Look at the stability of that asset!!!!
Brother, there is a difference between payment and settlement, when considering what you have been paid in. I consider my account paid in full when I have been paid in gold. If I am paid in fiat,I only consider my account balanced when I convert them to gold. That's my numeraire for fiat.
So you only accept settlement in physical gold, so what? You're a nobody. Mastercard processes 22 billion transactions a year in fiat currency at 140 milliseconds per and they're not even as big as Visa.
I don't care if you only accept settlement in gold, beef jerky or silk handkerchiefs and neither does anybody else.
Mate, you are a blow hard and a wanker. Change hands and then piss off.
Dishonest: Check
Disingenuous: Check
Historically Ignorant: Check
Specious, Strawman Arguments: Check
Pigheaded Refusal to Accept or Acknowledge Any and All Counterarguments: Check
Meet the new sockpuppet of JohnnyBravo/MasterBates!
Let the monetary store of value float against the currency. If currency is expanded, its value drops against the monetary store of value (gold) by theh same amount. See? This is the euro. It is already working! By floating the value of their reserves the gold has risen to 60%. This is not a small amount.
A) It hasn't "risen to 60%" or anything like that.
B) Other assets have risen and dropped in value.
C) If they sold ALL the gold on their balance sheet it wouldn't matter a damn, would it, since they'd be just as able to settle their debts without the gold as with the gold. So why is gold more "money" than any other asset on the ECB's balance sheet?
A) It hasn't "risen to 60%) or anything like that.
B) Other assets have risen and dropped in value.
C) If they sold ALL the gold on their balance sheet it wouldn't matter a damn, would it, since they'd be just as able to settle their debts without the gold as with the gold.
P.S. - Gold goes to $1700, in my view.
Knocking the price down, manipulating it, creating a pullback - a buying opportunity. Global elite POS
Presuming that Soros is genuine in his concern, he is very bold to keep the politics that he does, (favoring central planning and all, and really anti-individual) after living through what he did. It seems like tremendously flawed judgement to me.
i don't invest in gold. i accumulate it. now gold juniors are a different thing entirely.
George, seriously, STFU.
Here, here!
+ 1275
+1284, in fact. Good morning indeed from the UK.
Soros concern with gold is, the central banks may dump their gold and drop the price in currency. I dont loose any sleep over it.
if the central banks dump it will ber so that the bullion banks can cover their shorts. talk about worthless fiat
That looks right to me.
If the fed is finally backed into a corner, the very last step before pushing the nuclear launch codes on the printing presses is to blow out the gold horde.
Of course, this assumes the Fed actually has a gold horde.
People should demand physical delivery of all their gold and store it at their houses because lord knows this government will move to confiscate from the banks should things go super-nova.
Why would the government need to "confiscate" anything from banks?
For taxes?
Hmmmm,... another connected billionaire, but this one cautioning everyone about gold while he's up to his hips in it. Well,... at least he wasn't telling all us po'folk stocks are cheap...