246 lines
6.0 KiB
Plaintext
Executable File
246 lines
6.0 KiB
Plaintext
Executable File
finance
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personalfinance
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investing
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gold
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8524535
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-----
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# George Soros sells his gold
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## George Soros, the hedge fund investor who called gold "the ultimate
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bubble", has sold almost his entire holding of the precious metal, leading to
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fears that the price is about to fall.
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![George Soros - George Soros sells his gold][1]
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George Soros sold most of his gold ETF holdings but bought shares in two
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mining companies Photo: Bloomberg News
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[![Richard Evans][2]][3]
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By [Richard Evans][4] 6:34PM BST 19 May 2011
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[Comments][5]
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The investor, famous for his £10bn bet against the Bank of England in 1992,
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made his "ultimate bubble" remark in January last year but acted to cut his
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holding only in the first quarter of this year.
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Holding on has proved hugely profitable - in January 2010 gold was trading at
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about $1,100 an ounce, whereas the lowest price during the first three months
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of 2011 was more than $1,300. The highest was about $1,450.
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It is not known exactly when Mr Soros sold his gold, which was held via the
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Soros Fund Management investment vehicle. Filings to the Securities and
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Exchange Commission (SEC), the American regulator, showed that he had sold
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99pc of his holding in SPDR Gold Trust, an exchange-traded fund (ETF) backed
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by gold bullion, by the end of March.
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The New York-based fund sold its entire holding in iShares Gold Trust, a
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similar investment. But Mr Soros bought shares in two mining companies,
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Freeport-McMoRan Copper & Gold and Goldcorp.
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This may have been a smart move. "As the precious metals rally ends, you'll
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get transition toward related equities," James Dailey of Pennsylvania-based
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Team Financial Asset Management, told Bloomberg. "You don't see any
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speculative appetite for gold stocks yet."
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## Related Articles
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* [John Lewis warns on sales][6]
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20 May 2011
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* [Silver surges to 31-year high, gold hits record][7]
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25 Apr 2011
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* [Gold price could rise to $1,700 an ounce][8]
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21 Apr 2011
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* [Jewellery sales collapse as gold hits new record price][9]
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21 Apr 2011
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* ['The gold price may soon suffer vertigo'][10]
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21 Apr 2011
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* [Gold price hits new record above $1,500 an ounce][11]
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20 Apr 2011
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The gold price fell slightly following the announcement that Mr Soros had sold
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his holdings.
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Not all investors share his view. Paulson & Co, the US hedge fund run by John
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Paulson, left its holding in the SPDR Gold Trust unchanged, filings to the SEC
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showed. And Hal Lehr, a commodity trader at Deutsche Bank, was quoted by
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Bloomberg as saying: "I'm bullish on gold despite its current levels. It could
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reach $2,000 an ounce in the next eight months."
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While gold ETF holdings fell by 3.3pc in the first quarter of the year, there
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is evidence that some of the proceeds were used to buy gold bullion directly.
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Gold's bull run has been driven by its traditional status as a trusted store
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of value in times of economic turbulence. In particular, investors have
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worried that the policy of "quantitative easing" adopted by many central banks
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is devaluing paper currencies.
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The metal's enthusiasts point out that, while the authorities can print
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unlimited amounts of sterling or American dollars, the supply of gold is
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finite.
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More recently, the sovereign debt crisis in the eurozone has supported the
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gold price. But investors worried that gold is indeed a bubble may prefer to
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follow Mr Soros's example and sell. Betting against him can be expensive, as
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the Bank of England would agree.
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[X][12] Share & bookmark
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Delicious Facebook Google Messenger Reddit Twitter
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Digg Fark LinkedIn Google Buzz StumbleUpon Y! Buzz
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[What are these?][13]
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* Share: [Share][12] [ ][14] [ ][15]
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[Tweet][16]
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http://www.telegraph.co.uk/finance/personalfinance/investing/gold/8524535
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/George-Soros-sells-his-gold.html
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Telegraph
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## [Gold][17]
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* ### [Finance »][18]
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* ### [Personal Finance »][19]
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* ### [Investing »][20]
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* ### [Richard Evans »][3]
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[![find an independent financial advisor][21]][22]
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### [Find an Independent financial adviser][22]
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In finance
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[![Ambrose Evans-Pritchard][23]][24]
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### [Gold's incredible run][24]
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[![][25]][26]
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### [How to invest in gold][26]
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[![Golden Bear Film award: Wanted: Someone who thinks the gold price is going
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to fall][27]][28]
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### [Wanted: Gold bears][28]
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[X][12] Share & bookmark
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Delicious Facebook Google Messenger Reddit Twitter
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Digg Fark LinkedIn Google Buzz StumbleUpon Y! Buzz
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[What are these?][13]
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Share:
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* [ ][12]
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* [ ][14]
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* [ ][15]
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* [Tweet][16]
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* Advertisement
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![][29]
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telegraphuk
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Please enable JavaScript to view the [comments powered by Disqus.][30] [blog
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comments powered by Disqus][31]
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[![][32]][33]
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Advertisement
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[Telegraph Offers »][34]
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3. [George Soros sells his gold][47]
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4. [UK’s ostrich generation: millions of Britons risk pension
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poverty][40]
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5. [Nationwide launches 'honeytrap' mortgage as house prices fall][48]
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