With high-yield bond funds suffering the largest redemptions in their history, this week saw gold fund flows soar to their highest in 2016 as buyers took advantage of the lower prices following the same path as George Soros, Stan Druckenmiller, Jana Partners, and Canada's financial giant CI Financial.
Junk bonds saw the single-biggest daily redemptions in history this last week...
As investors appreaed to seek safe haven in precious metals. Gold saw the biggest week for inflows this year with 1.879 m/oz worth $2,359 million dollars.
As SputnikNews reports, demand for gold rose by 21 percent in the first quarter of 2016. Recently, billionaire George Soros invested nearly $390 in gold stocks, having decreased investments in other assets. Shortly after, large hedge-funds followed the example of the legendary US investor.
Between January and March 2016, Soros Fund Management established by George Soros increased investments in gold market assets, according to the company’s data.
Particularly, the fund bought shares worth $264 million in Canada’s company Barrick Gold, one of the world’s leading gold producers. It also bought an option for nearly 1.05 million shares ($123 million) in SPDR Gold Trust, the world’s biggest gold exchange fund.
Soros also made bets on a drop in the US stock market, having decreased investments in stock assets. In the first quarter, the value of Soros Fund’s exchange-traded assets dropped by 37 percent, to $3.5 billion.
Other big investors have followed Soros’ course toward the yellow metal. Former Soros partner billionaire trader Stanley Druckenmiller said in early-May that gold became his favorite asset in a time of low interest rates.
According to media reports, Druckenmiller, whose net worth is estimated at $4.4 billion, is making long-term investments in gold while holding short positions on US companies’ shares.
In January-March, investment fund Jana Partners managing assets worth $11.6 billion invested in gold for the first time in 12 months, having bought shares in SPDR Gold Trust for $5.9 million.
CI Investments Inc., the investment subsidiary of Canada’s financial giant CI Financial, bought 2.81 million shares of SPDR Gold Trust. It also purchased 1.5 million shares in Barrick Gold.
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Time for BlackRock to start halting creation again soon?