Gold has a way of showing itself when investors get nervous about the stock market. Nervousness is running rampant through the minds of investors right now, and they are trying to ease their fears by investing in gold. Investing in gold when there is economic uncertainty isn’t a new strategy. The precious metal has always been a haven for investors that want to park their money in a safe commodity. George Soros, the billionaire hedge fund manager, is doing more than parking his money in gold. He is rearranging his portfolio, so he is prepared when the U.S. stock market begins to crumble again. Soros believes the time is near for a major global recession, and he has invested more than $241 million in the largest gold mining company in the world to confirm his prediction. Barrick Gold, the largest gold miner in the world, is more than a safe investment according to Soros. His 19.4 shares in the company proves he is not afraid to roll the dice and bet that the price of gold is going to skyrocket in the next 18 months.
The Soros Fund only has one investor and that investor is George Soros. Soros bought out all his limited partners, and he only invests his own money now. The Soros fund still owns more than $3.4 billion in stocks, according on http://www.bloomberg.com/news/articles/2016-05-16/billionaire-soros-cuts-u-s-stocks-by-37-buys-gold-producer, but most of that money is invested in EBay, Apple, Yahoo, and Zoetis. Even though he decreased his stock holding by 37 percent, he still is a major player in the stock market.
But the George Soros move does seem to signal an end to the bull market, according to an article published by Motley Fool. Soros bet that stocks will fall when he placed 2.1 million shares of put options on the SPDR 500 EFT Trust. Even though Soros hasn’t explained his recent investment moves it’s clear the billionaire is preparing for the global economic meltdown he has been talking about for the last four years.
George Soros has a proven track record when it comes to predicting economic shifts. He broke the Bank of England in 1992 when he bet the pound sterling would have to be devalued, and that happened. The Soros Fund made more than $7 billion on that bet, and Mr. Soros put more than $1.4 billion in his bank account from that transaction. Even though Soros started as a Hungarian refugee that escaped Nazi occupation, he never let his past interfere with his future plans. He graduated from the London School of Economics and moved to the United States to learn the investment game. He was a good student, and he is now one of the foremost investors in the world. See: https://www.opensocietyfoundations.org/people/george-soros