George Soros is returning to the world that made him famous. After a long time away from financial trading, George Soros is making a huge comeback. Based on reports in the Wall Street Journal, the amount of money George Soros wishes to trade with is far from a small amount. He is interested in putting billions of dollars into the market. No, George Soros is not interested in retiring. Even after many decades, trading is part of his life. His decision to return in such a big way, however, has taken the financial media by surprise.
The asset in which George Soros is choosing to put his money is gold. Considering the current economic situations across the world, this should not come as a massive surprise. Soros had warned that a failure to properly manage the current migrant crisis under control would cause major fiscal problems in Europe. He also noted that the departure of the United Kingdom from the European Union would also ferment additional economic woes. Things have not reached the point of a meltdown, but Soros feels numerous factors rippling through global economies have the potential to cause a possible meltdown. At the very least, a significant recession could emerge.
A Bearish George Soros Is Trading Again
Gold is an asset people see as a safe haven when currencies and stocks are in bad shape. Many people choose to venture into the gold market. Soros, as CNBC reports, is doing the same thing. He is just doing it on a massively grand scale.
Soros, through Soros Fund Management, has chosen to put $30 billion in the gold market. A massive amount of gold has been purchased with this money. The $30 billion likely comes from a disinvestment from stocks and currency. While the acquisition of physical gold is heavily reflected in the purchase, another strategy is at work here.
Soros is also putting money into gold mining stocks. As the demand and value of gold increases, these stocks are likely to increase. This may be the case even when the overall market might decline.
Over the course of the next year or two, all will be revealed in terms of whether or not Soros’ trading gamble has paid off.
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