It has always been safer to invest in Gold especially when risks for other investment options are escalating. Most economists say that if you want to sit turbulence, do it with gold. In an article that appeared in the Wall Street Journal, Billionaire investor George Soros is reported to have taken a bet on gold of US$264 million. George Soros bought the shares in the Canadian gold miner hence increasing to 1.7% his stake in the gold miner company.
George Soros is known for taking investment risks and making crazy bets. Though not all his bets pay off, most of them have paid off and making him so much wealth. In him growing his stake in Gold investment, George must be up to something, and that is what every person keen on investment trends wants to understand. George Soros historical interest can be traced to the fact that he is Hungarian born. He fled Budapest just before the start of World War II to London. Some people have interpreted his bet on gold as betting against the Euro and the European Union unraveling.
From his recent comments, Soros seem to believe that the American economy could have a repeat of the crisis experienced in 2008. There are already risks threatening to take the economy back there like the Chinese Yuan revaluation and Italy leaving the Euro. According to Soros, the situations remind him of the 2008 crisis. George Soros could be safeguarding himself from the losses that can be brought about by such risks.
George Soros | The New York Review of Books
The big question remains whether Soros is betting on a decline in the United States stock market, or he is just trying to hedge his portfolio by use of these options. The market is also watching to see whether he will reduce his Stock investment further. According to Todd Salamone, Schaeffer’s Investment Research senior vice president of research there is not such a significant risk in the stock market. He says that either Soros made a significant bet against stocks or if his aim is a hedge Soros doubled his caution.
Born in Hungary and holding two citizenships (Hungarian and American), George Soros has been known to make money whether markets are going up or down. His market observation is therefore trusted, and many investors give an ear to his market interpretations. He rose to fame in September 1992 when he risked $10 billion speculating on a single currency the British pound. On a single day, he generated profits of $1 billion. Due to this, he is famously known as “the man who broke the Bank of England.”
George Soros is also known for running the Quantum Fund, which generated an annual return of over 30% when he was at the helm. Apart from being a renown investor, George Soros is an author and a philanthropist. He has fourteen books to his name advising on investment and challenges facing the European Union. Soros philanthropic activities started in the 1970s when he began funding black students in South Africa to attend the University of Cape Town.
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