Last week George Soros one of the richest men on earth, revealed he has gone long on gold. Soros has an impressive track record and famously made over a billion dollars in one day by betting against the British pound.
Soros revealed his investment fund invested $264 million in Toronto listed miner Barrick gold and a further $431 million in gold ETF’s. Soros is shorting the major stock indexes and has reduced his equity exposure.
Soros has built a personal fortune worth $24 billion and has repeatedly warned of the risks posed by a debt fuelled Chinese economy. The former hedge fund manager believes the Chinese economy is over leveraged and expects the credit bubble to pop.
Stan Druckenmillar, Soros former strategist has also significantly increased his gold exposure. Gold now represents his largest currency allocation. Over a 12 year period Druckenmillar achieved a 37% annual return.
Despite the recent pull back institutional money is once again returning to the sector.