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Soros Gold Action Speaks Louder Than 'Bubble' Words

Tyler Durden's picture


From GoldCore

Soros Gold Action Speaks Louder Than Trumpeted 'Bubble' Words

Today's AM fix was USD 1,594.75, EUR 1,293.60, and GBP 1,016.74 per ounce.
Yesterday’s AM fix was USD 1,614.50, EUR 1,305.60 and GBP 1,028.34 per ounce.

Silver is trading at $27.70/oz, €22.65/oz and £17.74/oz. Platinum is trading at $1,401.25/oz, palladium at $571.75/oz and rhodium at $1,060/oz.

Gold dropped $8.70 or 0.54% in New York yesterday and closed at $1,599.60/oz. Silver climbed higher before retreating to $27.64, but it then rallied back higher to end with a gain of 0.14%.

Gold is under pressure today despite the likelihood of more QE from the FED, ECB and other central banks and despite the very uncertain and poor macroeconomic outlook.

Positive US data, retail sales grew for the first time in 4 months, may have led to gold weakness and scaled back hopes that the US Fed will take action soon.

On Tuesday, Gold ETF interest increased to its highest level in nearly a month at 2,190.583 tonnes showing how investment demand in the gold ETF is far more ‘sticky’ and long term in nature.

This means that there is a fundamental pillar of support below the gold market which did not exist in the 1970’s.

An important positive development for the gold market is billionaire financiers George Soros and John Paulson have again increased their allocations to gold as seen in the latest SEC filings.

George Soros more than doubled his shares in the SPDR gold trust ETF.

He increased his position in SPDR Gold to $137.3 million in the second quarter from $52 million previously. SEC filing for the second quarter showed Soros Fund Management more than doubled its investment in the SPDR Gold Trust from 319,550 shares to 884,400 shares at the end of June.

In September 2010 (see chart), Soros called gold "the ultimate bubble" and largely dumped his stake in the ETF before gold recorded annual gains in 2010 and 2011 and rose to a nominal high of $1,920.30 per ounce in September. 

There was speculation at the time that he may have sold the SPDR trust in order to own far safer allocated gold bars.

Another billionaire investor respected for his financial acumen is John Paulson and Paulson & Co increased its holdings by 26% by purchasing an additional 4.53 million shares of the SPDR Gold Trust to bring entire holding to 21.8 million shares. 

It was the first time Paulson & Co had increased its position in the SPDR Gold Trust since the first quarter of 2009, when the investment firm initially acquired 31.5 million shares. It means that Paulson's $21 billion hedge fund now has more than 44% of the company's assets allocated to gold.

Paulson, who became a billionaire in 2007 by betting against the US subprime mortgage market, lost 23% in his gold fund through July as lower bullion prices and slumping mining stocks led to losses.

The increased allocation by Paulson shows that he has much confidence that his allocation to gold will pay off in the long term. 

Gold Prices/Rates/Fixes /Volumes – (Bloomberg)

According to Bloomberg, Vinik Asset Management, the Boston-based hedge fund founded by Jeffrey Vinik, who formerly ran the Fidelity Magellan Fund (FMAGX), cut its entire stake in the gold ETF. On March 30, the fund held 2.3 million shares, SEC data show. Eric Mindich’s Eton Park Capital also sold all of its 739,117 shares last quarter, a filing showed.

Moore Capital Management LP acquired 120,000 shares of SPDR Gold Trust in the second quarter, a filing showed yesterday. The hedge fund held no shares in the gold fund as of March 31. Moore was also aggressive in selling financial and bank shares such as JP Morgan (JPM), Wells Fargo and US Bancorp.

Gold fell 4% in Q2 but the increased allocations show that some of the smartest money in the world continues to see gold as a buying opportunity. With the Fed having bought $2.3 trillion of debt in two rounds of 'quantitative easing' and all major central banks keeping borrowing costs at a record low gold's fundamentals remain very sound. 

Soros' recent renewed allocation to gold has been far less trumpeted than his gold 'bubble' remark and much trumpeted liquidation of gold holdings in May 2011. Some have suggested that Soros was misinterpreted regarding his gold bubble remark and may have meant that gold will in time become the "ultimate bubble".

Cross Currency Table – (Bloomberg)

Alternatively, Soros wishes to accumulate a large position in gold prior to prices rising even further and was happy to help dissuade the retail public from entering the gold market until he owns a significant amount of gold. 

Some hedge fund managers have been known to talk down an investment while in the process of accumulating.

It could simply be that Soros has changed his opinion regarding gold and does not now view it as a "not safe," "ultimate bubble". This seems likely as he has warned that there is a real risk of a euro break up and is on record regarding having deep concerns regarding the US fiscal situation - both of which are of course bullish for gold.

Paulson told clients in February that gold is his best long term bet, serving as protection against currency debasement, rising inflation and a possible breakup of the euro. 

Given Soros awareness of financial risk it is likely that he also owns physical bullion and not just the more high risk shares in the very public SPDR trust.

Other highly respected managers such as Kyle Bass, Greenlight Capital's David Einhorn and Third Point LLC's Daniel Loeb are on record as favouring more discrete ownership of actual physical gold bullion bars - in an allocated format in a secure vault.

We advise our clients – retail, pension and institutional – to do likewise and own physical gold bullion in the safest way possible.

For breaking news and commentary on financial markets and gold, follow us on Twitter.


Gold edges up on Europe stimulus hopes; US data weighs - Reuters

ECB - Gold Reserves Unchanged In Week to Aug 10 - Reuters

Royal Canadian Mint Unveils New Gold and Silver Bullion Coins – Coin Update

Gold Fund's Collapse Rattles Poland – Wall Street Journal


Aaaand It's Gone: This Is Why You Always Demand Physical – Zero Hedge

Which Way Will the Pendulum Swing for Gold? - GoldSeek

Silver Hoard Near Record High Has Transnational Silver Abusers Concerned – Silver Vigilante

“They’re Going to Put the Old System In a Coma”! - CNBC

Ron Paul – “U.S. Treasury Guilty of Counterfeiting Dollars” – Gold and Silver Blog


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Wed, 08/15/2012 - 08:13 | 2706237 diogeneslaertius
diogeneslaertius's picture


Wed, 08/15/2012 - 08:16 | 2706251 GetZeeGold
GetZeeGold's picture



Please donate your gold to George......he's got a new gold digger wife to feed.



Wed, 08/15/2012 - 08:20 | 2706275 malikai
malikai's picture

He was buying all that for her? The least he could have done was get some delivered instead of that crap digital SPDR gold.

Wed, 08/15/2012 - 08:44 | 2706322 tocointhephrase
tocointhephrase's picture


Wed, 08/15/2012 - 09:10 | 2706384 Arnold Ziffel
Arnold Ziffel's picture
Central Banks Back to Buying Gold


Big changes are afoot in the gold market. The short take: The new environment will favor long-term investors who buy and hold for years over speculators who try to trade day-to-day gyrations.

For one thing, central bankers are back buying gold. Think it’s no big deal? The last time we saw the so-called official sector as such a consistent and major buyer was in 1965

Central banks increased their gold hoards by 400 metric tons — each equal to almost 2,205 pounds — in the 12 months through March 31, up from 156 tons during the prior year, according to recent World Gold Council data.

The council “is now confident that central banks will continue to buy gold and has added official-sector purchases as a new element of gold demand,” writes Austin Kiddle in a report for London-based bullion dealer Sharps Pixley.

Wed, 08/15/2012 - 09:23 | 2706405 Popo
Popo's picture

Wait.  Stop.

This post throws a wrench into one of Zerohedge's central theses:  The general ZH position is that gold-backed paper is bullshit.   Ok, I'm with you there!

But now here's this post saying that Soros is showing his hand (ie:  Showing us what's *really* a good investment) because he's silently loading up the truck with gold.    (Nice!).

Except ... Soros is buying gold paper.   Now that's interesting.  Soros is no idiot.

So we could read this as, "Hehe.. Soros is a sucker", but that's probably unwise.  Wall Street is strewn with corpses of those who have thought that way.    Or we could read this as,  "Ah.. here's the 'tell'.  Soros is loading up on Gold", and that's true... but that doesn't answer the question of why paper?

There's a third option... and it ain't good:

The question is, what does Soros know that we don't know?   Because say what you will about Soros, but he's definitely "dialed in".   And betting against him is bad for your financial health.  So why is he buying paper?

The third option is:   Is he expecting a pump and dump? 

Because the one thing about paper is that you can *unload* very quickly...


Wed, 08/15/2012 - 09:39 | 2706474 malikai
malikai's picture

Isn't there some stipulation in SPDR's prospectus that talks about how you can only get delivery if you own a large block? I seem to recall there was a certain threshold you had to own in order to get physical from SPDR.

Of course I'm presuming he wanted physical, that is..

Wed, 08/15/2012 - 09:57 | 2706521 Spitzer
Spitzer's picture

good call. Popo man is making a whole lot of noise about nothing and if soros is so great ,he can give him 2 and 20. and if he s so great , why did he lose out on the gold rally by not buying is sept ten.He didnt even get the seasonal right .


Its not a good idea to talk down gold in september ffs 

Wed, 08/15/2012 - 10:38 | 2706683 Popo
Popo's picture

But... now we know he did buy.  

Who's talking down gold?  I've been holding physical since the 1990's.   But the dumb-money gold investors just "keep stacking".  (Not a terrible strategy, btw).   The smart money gold investors know "when to stack".

Which one are you?

Wed, 08/15/2012 - 13:10 | 2707187 Nage42
Nage42's picture

Certainly true for SLV.

There were some very specific criteria for where holders can convert shares into a batch of physical for delivery.  You basically had to be tied into a primary dealer and be able to get delivery into their physical vaults, i.e., space in the new JPM or Goldmans vaults in NY.

You can bet your daughter's kidneys that Soros can "meet the strict criteria."


I believe the statement made was that certainly for SLV if you met the criteria it was the cheapest way to get very large deliveries of silver made... which made me wonder why Sprott was whining about how hard it was to get $30M sourced... when he could have just brokered it via SLV... maybe he was just against putting money in his competitor's pockets?

Inquiring minds want to know.


Wed, 08/15/2012 - 09:46 | 2706488 Temporalist
Temporalist's picture

Another option maybe; Soros, like the Chinese who were exchanging shares of GLD as a way to get physical , wants a lot of physical quickly and he believes this is the fastest way to get it. One thing about GLD is buying a lot of it won't move the gold price higher so he will pay less by not making a massive purchase of physical outright and driving spot up.


Or he believes that getting the physical out of GLD will collapse them and he's also shorting it so he gets some physical and gets paper gains.

Wed, 08/15/2012 - 09:48 | 2706497 ParkAveFlasher
ParkAveFlasher's picture

1) Buy paper

2) Own paper

3) Control price with paper

4) Buy physical

5) Own physical

6) Sell paper

7) Own physical

7.5) Repeat

8) Control price with physical

9) Gold, bitchez!

The fact that Soros' position in paper gold keeps flipping from buy to sell to buy to sell and back again at more or less a regular rate is the tell here. 

Wed, 08/15/2012 - 11:41 | 2706865 HungrySeagull
HungrySeagull's picture

Paper cuts, known to reduce the strongest man into a mewing begging heap.

Wed, 08/15/2012 - 08:17 | 2706260 Doubleguns
Wed, 08/15/2012 - 08:13 | 2706240 Watauga
Watauga's picture

Whatever happened to ZH's favorite line? "Gold Bitchez!"

Wed, 08/15/2012 - 08:15 | 2706252 GetZeeGold
GetZeeGold's picture



What took you so long?


Wed, 08/15/2012 - 08:33 | 2706301 LULZBank
LULZBank's picture

Bitchezz got moody.

Wed, 08/15/2012 - 10:05 | 2706542 dottjt
dottjt's picture

Soros probably bought the rights. 

Wed, 08/15/2012 - 12:14 | 2706950 mr_T
mr_T's picture

Those two catz will definitely take physical delivery before the ETF is crashed. If I had to bet the gold will be shipped and stored in HK or Singapore...or outside the US somewhere.

Wed, 08/15/2012 - 08:13 | 2706241 diogeneslaertius
diogeneslaertius's picture

buy gold like you are a Chinese Central Banker

Wed, 08/15/2012 - 08:24 | 2706284 mick_richfield
mick_richfield's picture

You mean under an alias?

Wed, 08/15/2012 - 08:14 | 2706244 fireangelmaverick
fireangelmaverick's picture

You cannot print gold. Wait, is that eat or print?

Wed, 08/15/2012 - 08:14 | 2706248 TrumpXVI
TrumpXVI's picture

Okay, so Soros and Paulson added to their paper gold holdings.  What exackitickly does this mean?  Are they bullish or just part of Team Whack-a-Mole?

Wed, 08/15/2012 - 08:19 | 2706272 StychoKiller
StychoKiller's picture

Read the prospectus for GLD -- then be amazed that anyone with some brainz would buy into it!

Wed, 08/15/2012 - 08:34 | 2706306 LULZBank
LULZBank's picture

What does it say. Surprise us.

Wed, 08/15/2012 - 08:21 | 2706280 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

It means Goldcore is talking their book with shameless confirmation bias.

Wed, 08/15/2012 - 09:31 | 2706443 Bay of Pigs
Bay of Pigs's picture

No shit. Not once did they mention GLD.

SPDR Gold Trust? Yeah, okay...whatever.

Wed, 08/15/2012 - 08:15 | 2706250 Hype Alert
Hype Alert's picture

Soros, a man you can trust.  To lie.

Wed, 08/15/2012 - 08:17 | 2706253 falak pema
falak pema's picture

so the big boys are increasingly into paper gold?

That does not fit in with ZH's analysis in its takedown of the Polish Amber gold  ETF.

Que passa? Of mice and men...Who is blind mice and who are the men?

Wed, 08/15/2012 - 08:16 | 2706254 johnnymustardseed
johnnymustardseed's picture

Is Soros bigger than JPM(the FED) and their computers????? I don't think so. They will continue to protect the fiat.

Wed, 08/15/2012 - 08:34 | 2706302 mick_richfield
mick_richfield's picture

Fiat doesn't matter.  Power matters.

The Powers will protect the fiat currency regime only so long as it is effective in protecting their power.

They know it will not last forever, so they have been accumulating PMs for the last 40 years, effectively robbing all the world's nations of their real money simultaneously.  paying for the gold with funny-money. 

They now have acquired a much larger fraction of the world's gold than they had at the beginning of the fiat currency regime that they forced on the world, using WWII and American military power as the fulcrum..

When that regime has been pushed as far as it can, and is starting to become unstable, they plan to 'pull' it themselves, sacrifice a bunch of their well-known lieutenants, and come back when the dust settles with a restored real-money system.

That's the plan, as I see it. If it works, they will own the world for another 500 years.

I don't think it's going to work.



Wed, 08/15/2012 - 08:37 | 2706310 LULZBank
LULZBank's picture

Can we send them all to some desert or some barren island with ALL THEIR GOLD, while we humans just carry on with life?

Wed, 08/15/2012 - 08:48 | 2706325 Colonel
Colonel's picture

That's not how parasites operate. Who's only claim to fame is lies,deceit and manipulation. They would still need the "host" of humanity.

Wed, 08/15/2012 - 08:54 | 2706338 LULZBank
LULZBank's picture

Thats not how "hosts" operate, they need lieing, deceiving and manipulating parasites to tell them all is well and everything is under control and they can enjoy the food circus, relieved of thier individual social responsibilities.

Wed, 08/15/2012 - 09:00 | 2706354 Colonel
Colonel's picture

Also if you observe animals in nature with parasites on or in them it appears the host animal is not even aware of them, that's where the media/presstitutes comes in, that's their function.

Wed, 08/15/2012 - 09:06 | 2706374 LULZBank
LULZBank's picture

Also if you observe animals in nature, especially domesticated cattle like sheep, they are fed and bred to be fleeced and slaughtered by the farm keepers. Its their right and no foul play there. No reason for sheeple to complain.

Yes yes... its the fault of the media, otherwise we are all so smart and responsible.

Wed, 08/15/2012 - 09:35 | 2706462 Colonel
Colonel's picture

"they are fed and bred..."

Well, then they're not very good "ranchers".

Wed, 08/15/2012 - 10:24 | 2706631 LULZBank
LULZBank's picture

I do agree on their incompetance.

Wed, 08/15/2012 - 09:00 | 2706355 mick_richfield
mick_richfield's picture

They don't think they are parasites.

They think they are ranchers, and we're the cattle.

I must admit I can sometimes see their point, when I see how much my fellow men desperately desire to act like dumb beasts.

Do the wolves make the sheep docile, or do the sheep demand their ownership by the wolves?


Wed, 08/15/2012 - 09:13 | 2706388 LULZBank
LULZBank's picture


Just easlier today, I was chatting with a friend, a hardcore believer of the status quo and media lines, and as of late I just agree to the official line and was agreeing with everything he said.

i.e. in a couple of years things will be back to normal and green shoots everywhere and I also said the Central Banks were doing a good job by supporting the banks with doses of QE, which will help the banks to get back on their feet again.

And he goes, "finally I saw some optimism from you and I feel much better now."

My sarcasm of "Glad to be able to help you sleep peacefully at night" was totally lost on him.

Fuck the Sheep.

Wed, 08/15/2012 - 09:30 | 2706440 mick_richfield
mick_richfield's picture

Neo:  Can't you unplug them all?  Can't you just wake them all up at once?

Morpheus:  We tried it once, with an entire sector.

Neo:  What happened?

Morpheus: They plugged themselves back in.  Almost all of them.


I think the deal is this:  sheep cannot be free.  If we simply kill all the wolves, the sheep will create new wolves

Wed, 08/15/2012 - 09:38 | 2706467 LULZBank
LULZBank's picture


The sheeple might even come after you for killing their wolf overlords.

Im not preaching anymore. Someone wants to jump off the cliff, I'd give a helping hand.. a push.

Be a Wolf... Fuck the Sheeple!

Not because Im greedy or perversive, but because I think soon my survival will depend on it.

The ruled are no better than the rulers.

Wed, 08/15/2012 - 09:42 | 2706482 mick_richfield
mick_richfield's picture

In the food chain model, you must be a wolf or a sheep.

But I think there is another model.


Wed, 08/15/2012 - 11:20 | 2706817 Deo vindice
Deo vindice's picture

'"I think the deal is this:  sheep cannot be free.  If we simply kill all the wolves, the sheep will create new wolves."

They don't even need to do that. They will just bite whoever is trying to help them.

I once heard an amazing fact from a man who was a sheep farmer:

The number one injury suffered by shepherds is ... bites from their own sheep.

Wed, 08/15/2012 - 11:53 | 2706903 nofluer
nofluer's picture

"Fuck the Sheep."

In MOST places, that's illegal... Are you proposing a change in the law, or just that exceptions be made For the elites? ;-)

Wed, 08/15/2012 - 11:39 | 2706863 nofluer
nofluer's picture

Not quite a year ago I was thinking about "The" Plan. Here's what I figured...

And soon after I posted a prescription for recovery -

to which I would add to #4, require the unlimited liability model of bank owners for loans and deposits.

Wed, 08/15/2012 - 08:16 | 2706256 madcows
madcows's picture

What good is an ETF?  It's only worth the paper it is printed on.

That said, the Oligarchs recognize the collapse is at hand and they are preparing.  You should do likewise.

Wed, 08/15/2012 - 08:17 | 2706258 Sean7k
Sean7k's picture

Big time Elites buying gold paper to protect the funds from being exposed for having no inventory. They have this collusion thing down pat. If it all goes to crap, it will be their "investors" that take the hit. 

Wed, 08/15/2012 - 08:17 | 2706262 fonzannoon
fonzannoon's picture

i think soros has a better chance of getting delivery than any of us

Wed, 08/15/2012 - 08:38 | 2706312 LULZBank
LULZBank's picture

Him getting delivered some lead or cyanide could be a much better deal for some.

Wed, 08/15/2012 - 10:58 | 2706749 Getting Old Sucks
Getting Old Sucks's picture

Apparently one can redeem shares for physical if they have enough shares and a relationship with a primary dealer.  Soros qualifies I'm sure.

8.Can you take physical possession of the gold?
The Trustee, Bank of New York, does not deal directly with the public. The trust handles creation and redemption orders for the shares with Authorized Participants, who deal in blocks of 100,000 shares. An individual investor wishing to exchange shares for physical gold would have to come to the appropriate arrangements with his or her broker.

Wed, 08/15/2012 - 08:17 | 2706264 buzzsaw99
buzzsaw99's picture

oh how the goldbugs admire the maggots

Wed, 08/15/2012 - 09:48 | 2706493 Bay of Pigs
Bay of Pigs's picture

Hardly. Goldcore, like many pro gold sites, does a disservive to the sector with this article. At the end they try to call it more "risky". So there's their due diligence? LOL, yeah okay. Fact is, anyone pushing or owning GLD is a clueless dumbfuck who deserves to lose it all.  

Wed, 08/15/2012 - 08:18 | 2706266 fonzannoon
fonzannoon's picture

plus he is old and is going to die soon. probably does not give a rats ass

Wed, 08/15/2012 - 10:20 | 2706617 Rip van Wrinkle
Rip van Wrinkle's picture

Not soon enough in my book. Yesterday would have been too late. NWO master planner.

Wed, 08/15/2012 - 11:31 | 2706846 dark pools of soros
dark pools of soros's picture

he is one of the reptile overlords that go back to the nest at a certain age...  won't die for another 2 or 3 centuries...

Wed, 08/15/2012 - 08:18 | 2706269 TideFighter
TideFighter's picture

Nooobody knows the trouble I seen, nooobody knows the Soros.....

Wed, 08/15/2012 - 09:38 | 2706472 SmallerGovNow2
SmallerGovNow2's picture


Wed, 08/15/2012 - 08:19 | 2706271 Ima anal sphincter
Ima anal sphincter's picture

Soros.... a man who could do us all a favor.... and die.

Wed, 08/15/2012 - 08:48 | 2706320 JonNadler
JonNadler's picture

or do us even a bigger favor and take Warren with him.

What am I saying? Old Warren did more to prevent  the sheeple from making money in gold than all my propaganda from the Kitco basement ever did

Wed, 08/15/2012 - 08:56 | 2706345 GetZeeGold
GetZeeGold's picture



If you're going to take Warren you have to include's a package deal.


Wed, 08/15/2012 - 08:23 | 2706283 Temporalist
Temporalist's picture

I have to agree with Warren Buffett on this one...Becky makes better bubble baths than Maria.

Wed, 08/15/2012 - 09:05 | 2706369 JonNadler
JonNadler's picture

Yeah but Maria can fart some pretty bubbles in the tub I hear and leave a wondeful 'but-aroma' behind. She aint get the name for nothing you know

Wed, 08/15/2012 - 09:12 | 2706395 LULZBank
LULZBank's picture

Ewww.. stop putting me off her.

Wed, 08/15/2012 - 08:26 | 2706288 FRBNYrCROOKS
FRBNYrCROOKS's picture

The day Soros dumped his gold was the day DSK, the President of the IMF, got busted for nailing that, skank, hotel maid ( hooker). I always thought that was a strange coincidence and wondered if Soros had DSK set up to get him out of the way for his gold dump?

Wed, 08/15/2012 - 08:31 | 2706297 Temporalist
Temporalist's picture

Speaking of the IMF, their whole "we will sell gold to anyone endlessly" scheme was halted abruptly when the CBs scooped up all the "gold" and has never started again.  I wonder why that is?  Hmmm...

Wed, 08/15/2012 - 10:42 | 2706620 TGR
TGR's picture

I suspect they got spooked when they got requests by sizable entities saying they were standing by to snap up any physical they were willing to relinquish. 

The potential headline of Central banks of Korea, Russia, China and Timbuktu fight among themselves to buy 400 tonnes of IMF gold was too much risk for the IMF to bear to actually go through with a sale.

Wed, 08/15/2012 - 11:09 | 2706791 ActionFive
ActionFive's picture

DSK found US had no gold- per foriegn news.

Wed, 08/15/2012 - 08:59 | 2706299 LULZBank
LULZBank's picture

Europe had 3 days, 3 months ago, according to Soros, what happened to that?!

He dumped (paper) Gold and now buying (paper) Gold again... and Goldman says no QE anytime soon.

Ofcourse, all their holdings are transparent and announced publicly, so the people can also follow suit.

"Masters, look after us. Masters are open with us.."

I like the way, you guys fuck the sheeple.

Wed, 08/15/2012 - 08:39 | 2706313 midtowng
midtowng's picture

Do as I do, not as a I say

Wed, 08/15/2012 - 08:57 | 2706348 LULZBank
LULZBank's picture

The State failed to save the citizens from beeing fleeced by one of their stooges?

Oh.. You can only Imagine my Surprise!

Wed, 08/15/2012 - 08:43 | 2706318 chances
chances's picture

time to sell then buy back on next years lows

Wed, 08/15/2012 - 08:43 | 2706319 BLOTTO
BLOTTO's picture

Reality is their illusion

Their fiction IS the reality.


Same as it ever was.

Wash, rinse, repeat.

Nothing New Under the Sun,

History is Repeating itself.

Wed, 08/15/2012 - 08:51 | 2706334 Quinvarius
Quinvarius's picture

Soros trades currency on inside information only.  That includes gold.

Wed, 08/15/2012 - 08:55 | 2706343 Bastiat009
Bastiat009's picture

Since GLD is not gold, what are we talking about here?

Wed, 08/15/2012 - 10:54 | 2706571 Getting Old Sucks
Getting Old Sucks's picture

I deleted that a bit soon.  Apparently one can redeem shares for physical if they have enough shares and a relationship with a primary dealer.  Soros qualifies I'm sure.

8.Can you take physical possession of the gold?
The Trustee, Bank of New York, does not deal directly with the public. The trust handles creation and redemption orders for the shares with Authorized Participants, who deal in blocks of 100,000 shares. An individual investor wishing to exchange shares for physical gold would have to come to the appropriate arrangements with his or her broker.

Wed, 08/15/2012 - 09:10 | 2706372 Disenchanted
Disenchanted's picture


Here's what else Soros was up to:


According to the report, Soros completely dumped his stakes in Citigroup (420,000 shares), JP Morgan (701,400 shares) and Goldman Sachs (120,000 shares), leaving him with no position in any major financials at all.


He also got rid of minor stakes in Dell (3,100) and Intel (10,600). 


As for going long, Soros revealed a a position in Facebook, having bought 341,000 shares.


Read more: . Also see:
. Hmmm...I saw that Uncle Warren dumped Intel too.
Wed, 08/15/2012 - 11:47 | 2706890 HungrySeagull
HungrySeagull's picture

He dumped whatever it is that will not be around to be useful...



Wed, 08/15/2012 - 09:16 | 2706408 hedgeisforpussies
hedgeisforpussies's picture

soros gave europe 3mionth before mrkt breaks down so until sep. it would be absolutely amazin if greece exits and defaults on sep 15 which will be 4 yrs since leh went down. i suppose he sold banks cause europe will take them all down. but even gold will go down if greece exits/defaults as all hedgies and govies will be forced to sell what it can to raise cash. i.e. sp, gold, Ts and bunds are perfect candidates.  

Wed, 08/15/2012 - 09:18 | 2706410 crshinn
crshinn's picture

In the end, what good is physical compared to fiat paper?  You can't eat physical.  Physical can't keep you warm at night.  Physical can't kill the rapist/murderer trying to hurt your family.

Physical is of no more value than fiat paper because physical is only worth something if someone thinks it's worth something. 

Wed, 08/15/2012 - 09:34 | 2706457 Monedas
Monedas's picture


Wed, 08/15/2012 - 10:43 | 2706704 mick_richfield
mick_richfield's picture


That's an old line, and it's just -- deliberately dumb.

PMs have value because monsters can't create them.  They have value because they keep us honest.   Without real money, we rapidly become slaves to the beasts who want infinite power over us.

The difference in value between precious metals and fiat currency is whatever our freedom is worth.

Wed, 08/15/2012 - 09:23 | 2706424 Arnold Ziffel
Arnold Ziffel's picture

George's new wife gave him some 'solid' advice.

Wed, 08/15/2012 - 09:25 | 2706430 eddiebe
eddiebe's picture

Could be, Popo, could also be that he wants some liquid security for quick market action, which bullion isnt so much. Clearly he is hedging against fiat, which for us bugs is welcome confirmation. I'm sure he is holding massive amounts of physical in his fall-out shelter/ wine cellar.

Wed, 08/15/2012 - 09:27 | 2706433 Monedas
Monedas's picture

What does Soros know that we already know ?   Hope his SPDR Gold is safe .... he's TBTH (too big to hoard) !   Anonymous Fartdom has it's advantages ?

Wed, 08/15/2012 - 09:38 | 2706471 tawse57
tawse57's picture

Seems a sensible speculative position to me.

If he thinks that gold is about to go up then buy loads of GLD, wait for X percent increase and sell it on for a tidy profit.

It is unlikely that within 6 or 12 months that the world ends and the fantasies of all the gold bugs, who incidently have watched 'Red Dawn' as a kid and believed it was a documentary and not a work of fantasy, about armed rebellion, living in the mountains with your gold coins, your guns and your baked beans come true.

I love lots of you American guys but there does seems a percentage of you who simply have such a narrow world view that you have no idea how safe and secure and lucky you are to be living in a democracy like the US. The end of the world scenarios painted by gold and silver bugs is the stuff of Mad Max and other Hollywood fantasies with no basis in reality.

I blame 'Red Dawn' and 'The X-Files' personally.

If you truly believed in gold price rising then a speculative punt on GLD or SLV seems sensible. Do you really think the end of the world will happen before you can sell at a 10% profit? Isn't a 10% paper profit a good thing?


Wed, 08/15/2012 - 12:29 | 2706988 nofluer
nofluer's picture

First I don't own any gold at all - neither paper or physical. I'm just a peon who likes to speculate what all you big shots are up to with your riches and how the game will go.

That said, I never saw "red dawn" - the adverts looked too silly for the price of admission. I DID watch The X Files 'cause I thought that the chick was kinda hot.

I've told gold bugs the wisdom cited above (can't eat it, won't keep you warm, etc), but true GBs can't see, having been blinded by the gleam of the pure uncut stuff in their eyes.

And all THAT said, the price of gold will only go up in terms of numbers as hyper-inflation hits in response to the early and mid stages of economic collapse. The VALUE of the gold will remain constant as the VALUE of other goods adjust to it. Get rich holding gold through the collapse? Nope. RETAIN wealth to carry you to the other side of the crash and early confusion? Certainly. (There will be a 5% knowledge tax, payable to me at my immaginary Emergency Prepper Shelter somewhere in the Rockies after the recovery.)


forgot - IF the $$ price of gold goes DOWN - it will STILL be a numbers thing due to DEflation vs INflation - but Gold will STILL retain value - not lose value. Of course, in such a case holding fiat paper would be better - unless the fiat fails which is entirely possible... which is why some who can, buy gold. They may pass up the chance to get mega-rich - but they won't mega-lose either... making holding PM the definition of a hedge.

Wed, 08/15/2012 - 09:59 | 2706534 Munkey
Munkey's picture

Soros, you are now just a jerk.


Charlie Munger

Wed, 08/15/2012 - 10:04 | 2706560 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The "ultimate bubble" quote is an interesting one, one I have written on many times before.  The Illuminists frequently tell their plans before they hatch them, this so you knew what would happen so that it is your fault you didn't either stop them or participate. 

The word "ultimate", like any word, has several definitions, one of which is "final".  What Soros meant was gold will be the "final" bubble; the coup d'grais.  Gold will end the financial ponzi and everyone will want in, at which point, because when everyone is bullish it will be a bubble, gold will be overbought.

Gold will be the ultimate, the final, bubble.

Wed, 08/15/2012 - 10:13 | 2706591 GOLDTEETHSILVER...


Wed, 08/15/2012 - 10:49 | 2706726 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

And if you ever wish to get home tap your silver slippers together three times.

Wed, 08/15/2012 - 10:36 | 2706662 EmileLargo
EmileLargo's picture

Soros correctly called the housing bubble and made a stonking big profit in 2007. However, after that event his calls have been a bit more sketchy and I would really like to know what his returns have been since then. I don't think they have been all that good.

He also bought Facebook shares in the IPO. He's losing his marbles.

Wed, 08/15/2012 - 12:38 | 2707051 nofluer
nofluer's picture

As posted on my blog, Facebook's IPO price should have been about $6 +/-. Anyone who paid more than ten (allowing for some "irrational exhuberance") is an idiot or has a pipeline to Goldman's IPO pump & dump schedule.

Wed, 08/15/2012 - 10:46 | 2706713 rgbensonaz
rgbensonaz's picture

In my 401k should I buy GLD or NEM?  NEM pays a 3% divident and has not expense change unlike GLD.

Wed, 08/15/2012 - 10:49 | 2706719 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Easy answer.  Next question....

Wed, 08/15/2012 - 11:09 | 2706790 Bansters-in-my-...
Bansters-in-my- feces's picture

SPDR is not Gold.

Wed, 08/15/2012 - 13:05 | 2707168 Mr. Market's Liver
Mr. Market's Liver's picture

Amazing how quickly John Paulson went from a buffoon who kept losing money to a "billionaire investor respected for his financial acumen" in ZeroHedge eyes.

All Whitney Tilson needs to do is buy some GLD and Tyler will declare you to be a genius. 

Since we all know gold is the only asset class which in incapable of being in a bubble.



Fri, 08/17/2012 - 13:46 | 2714726 suckerfishzilla
suckerfishzilla's picture

I'm going to try again.  If you guys would just buy Silver and rebuke Gold purchases you wouldn't be aiding and abetting these criminal bankers in their next phase of financial tyranny.  Soros bought a paper contract.  Nothing moved in the market.  Some accounting work was done.  Soros isn't Superman.  Everybody makes a wrong call from time to time.  You can't go wrong with any metal anyways so what is the big diffference to you?  Do you have a disease of the heart that can only be cured by gold? 

Fri, 08/24/2012 - 00:06 | 2732673 thunt
thunt's picture

I have noticed the same people who think "mad max" is not going to happen, also like to say you cant eat gold so they dont buy any. Does that really make sense to you? or are you just contrarian? IF the system isnt going to crash and the currency isnt going to be used as toilet paper, then what do you care what gold tastes like?

My brother who didnt graduate highschool (lets just call him ray-ray) was foolish enouph to buy 9,000 silver dollars when silver was 3.50. He started buying 1000 ounce bars when silver was 14.00.

We live in nebraska , we pile food three or four stories tall. I have a proposition for the people who think gold and silver are foolish. ... PIty us, but humor us. We will trade 5 tons of food for a ton of silver, and we will pay the delivery costs. That way you can laugh with your freinds over a good wine about how the hillbillies are starving on their mountain of precious metal. We get the shiny stuff to ooh and ahh at.

You would really be teaching us a lesson.

Please hurry the largest brokers have already ran out of silver u.s. coins and the gov is struggling to buy enouph silver to make the madatory eagles. So if your going to teach the backward conspiracy nuts a lesson you need to hurry and send us all your silver.

What do federal reserve notes taste like?

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