George Soros Takes Speculation Tactics To The Market of Gold
George Soros has finally decided to join Druckenmiller in betting for the Gold. Druckenmiller was the first to bet on the gold and recently, George Soros appears to have entered the tune. Druckenmiller is a billionaire and former hedge fund manager who recently revealed that gold was his family’s office largest currency allocation. In a similar move, George has joined him by purchasing a $264 million stake in Barrick Gold, which is the world largest gold producer. George Soros strategy also involved reducing the holding in stacks through his company Soros Fund Management by 37% equivalent to $3.6 billion in U.S. -listed stocks. Soros also disclosed owning gold ETF.
George Soros move is widely inspired by the uncertainty in the market following his recent prediction about a global economic slowdown. The slowdown according to George Soros will be caused by the rising level of debt in China which will eventually reach levels where there will be too much default followed by catastrophic events of the economic crisis. Soros has also urged investors to avoid China as an investment partner saying that Chinese authorities are focusing more on the country’s growth instead of containing the level of debt.
George Soros has event compared the current rising level of debt in China to the events before the 2007/2008 financial crisis in the U.S. According to Soros on https://twitter.com/georgesoros; the U.S. financial market was characterized by rising house and real estate prices and a significant number of investors funding real-estate using leverage. Whatever is happening in China at the moment, is a significant number of investors using debt to invest and the real estate market is selling at inflated prices that only signifies a bubble in the making.
George Soros is well known for making an enormous amount of wealth through market speculation. The most notable prediction was in 1992 which made him earn the title “the man who broke the Bank of England”. During that day, commonly referred to as the “Black Wednesday”, George Soros risked $10 billion on a single currency speculation against the British Pound, which he was betting that the currency will be devalued. Later, his prediction turned out to be right and on that single day, he made $10 billion.
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Soros was born in Hungary in 1930 and then fled to England in 1947 where he graduated from the London School of Economics in 1952. He later obtained an entry level job with an investment bank in London and then flew to the U.S. to work various positions as an analyst and investment management positions. George Soros founded his company in 1973 and referred the hedge fund company Soros Fund Management, which later evolved to be Quantum Fund.
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