Institutional investing mogul George Soros was recently interviewed by the South China Morning Post in Hong Kong and was asked a series of questions relating to China, shadow banking, philanthropy, and gold.
Soros suggested that the idea of gold being a safe-heaven had been ‘destroyed’ citing last year’s European crises, and gold prices not reflecting the poor economic outlook.
He went on to say people were disappointed in gold’s price action and ultimately sold their precious metals because they needed the money. Speaking largely on past events, Soros didn’t really shed light on the current situation. His bearish outlook on gold became apparent in the fourth quarter of 2012, when he sold half of his share in the GLD gold ETF.
However even Soros could not deny that gold prices would most likely not drop due to high demand by central bankers. Yet despite clearly stating prices wouldn’t drop, he had no claiming that gold has “proved to be unsafe” adding “because of the disappointment, most people are reducing their holdings of gold.”
Is George Soros really starting to take investment advice from the average man on the street, struggling to make ends meet? Soros’ claims are not only misleading and perhaps even contradictory, but might even be manipulative as he is smart enough to know what the smart money think of gold, and his still 600,000 share stake of the SPDR GLD ETF.