Soros Sees Gold Prices on Brink of Bear Market
Gold is poised to complete its 11th consecutive annual gain, the longest winning streak in at least nine decades, on the brink of a bear market.
George Soros, the billionaire who two years ago called it the “ultimate asset bubble,” cut 99 percent of his holdings in the first quarter, Securities and Exchange Commission data show. Hedge fund managers John Paulson, Paul Touradji and Eric Mindich also sold bullion this year. While speculators in New York futures are the least bullish in 31 months, the median estimate in a Bloomberg survey of 44 traders and analysts is for prices to rally as much as 40 percent to $2,140 an ounce in 2012.
The divergence of views is widening after prices declined 19 percent from a record close of $1,900.23 on Sept. 5, or 1 percentage point away from a bear market. As some investors retreated to cash amid a $10 trillion slump in global equity values since May, others bought more metal, taking holdings in exchange-traded products to an all-time high two weeks ago. Bullion’s 7.6 percent gain in 2011 means it’s on track to beat stocks, bonds and the dollar for a second straight year.
“It’s done its job this year of protecting investors,” said Michael Cuggino, 48, who helps manage about $15 billion of assets, including $3 billion in gold, at Permanent Portfolio Funds in San Francisco and correctly predicted in February that prices would keep rising. “Gold has been all over the place. If you bought gold at $1,800 then you aren’t too happy. Some people will get out of gold, but the longer-term investors will remain.”
Related posts:
- Gold Traders Most Bullish in Month on Debt Crisis: Commodities
- Gold Producers Poised Like ‘Coiled Spring’ to Rally: Commodities
- Sprott to Buy $1.5B of Silver Bullion
- GDXJ – Inverse Head & Shoulders or Bear Flag?
- Eric Sprott Says This Commodity Could Rise 245%
Short URL: http://profitimes.com/?p=11731
Posted by Profitimes
on Dec 29 2011. Filed under Best of the Web, Free Articles.
You can follow any responses to this entry through the RSS 2.0.
Both comments and pings are currently closed.