When George Soros opens his mouth, people listen. They should listen. The eighty-five-year-old, Hungarian-born philanthropist is considered the smartest investor in the world. Sure, there are hedge fund managers that will dispute that claim, but none of those hedge fund players have made big moves like Soros except for Kyle Bass in 2008. But Bass isn’t in the same class as George Soros. Soros is in a class of his own, and he proved that recently when he started trading again. The Soros Management Fund is the Soros family fund. The Fund is closed to outside investors. The Soros Fund has more than $30 billion in assets, and it gets bigger every day. The fund got bigger a couple of months ago when Soros decided to buy shares in Barrick Gold worth nearly $400 million. That investment has already appreciated thanks to the spike in gold prices and the 55 percent increase in the value of Barrick Gold Shares.
George Soros – CNBC
The 19 million share stake in Barrick Gold was only the beginning of the Soros gold investment strategy. Forbes.com published an article that showed another $125 million Soros Fund stake in the SPDR Gold Trust. The Soros investment strategy may seem strange because the U.S. stock market is so strong at the moment. But according to Soros, that is a temporary situation. Stock markets around the globe are heading toward rough water, according to Soros, and he knows why. Soros has been very vocal about the fact that the Chinese banks are sinking in bad debt. The rush to switch from a manufacturing base economy to a consumer-based economy in China has created a bank nightmare, and the only way to wake from that nightmare is to use capital reserves and bail the banks out of that debt.
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The other cause for alarm, according to Soros, is the mess that the European Union has created for itself. The Greek issue, the migration crisis, terrorism and fact that several members of the EU are in serious financial trouble is another reason Soros is investing in gold. It’s only a matter of time before these issues, along with the wars in the Middle East, throw the world into an economic drama that could last for years. Soros is moving his assets around now while he has the chance, and he’s not alone. Some of the largest hedge funds in the world are doing the same thing.
Soros has been predicting a global recession for the last six years, and it’s safe to say he thinks the world is on the verge of making that prediction a reality. George Soros and his family hedge fund are going to be prepared when that happens.