BOSTON (May 24, 2012) - Gold investors around the globe are taking note after word has spread that business and investing magnate George Soros' hedge fund is making a big change. According to reports from Fox Business, the gold assets in the Soros fund went from 85,450 shares of SPDR Gold to over 319,000 between the last quarter of 2011 and the first quarter of 2012. Those buying gold are paying attention because Soros has long been a name associated with extremely astute investing decisions that have produced incredible levels of profit in the past. As a globally recognized philanthropist who has given over $8 billion to charitable causes, this is one investor that many certainly aspire to emulate.
In the past, Soros has been less than positive about investing in the yellow metal, but investing world commentators note that despite anything communicated by Soros' camp, the end result has been further purchasing of gold stocks. Gold investors who take cues from Soros are noting that the basic lesson they are learning from his actions is that while the tycoon understands gold could very well drop in the short term, in the long run, it is going to rise despite any fears over the Euro or other currencies. This is an approach that even commentators from Seeking Alpha have taken note of.
"Inflation without economic creation, losing our dollar reserve status over time, a national debt that is completely insane and pointless, fiscal lunacy -- these all help spell out a long-term bull market, regardless of the short-term fluctuations," noted one columnist.
This attitude reflects the present feelings of many that are focusing their holdings in gold assets of gold bullion or other tangible precious metals assets. However, for those that are willing to take the extra risks that go along with purchasing gold stocks, opportunities are also being seen in this part of the market by a number of market observers.
When an investor like Soros' hedge fund makes headlines by quadrupling its holdings in gold-related investments, many are sure to start thinking about the decision to start buying gold. It is interesting to note that even when Soros was not particularly bullish on gold as an asset 2 years ago, he ended up missing out on what one commentator referred to as "the heavy correction that occurred mid-to-late 2011." It stands to reason that perhaps Soros is remembering that missed opportunity and looking to cash in this time around if currently, low gold prices begin to rise; many market speculators have been quite vocal about stating they believe this will happen.
All investors, even those on the level that Soros has achieved, are bound to make mistakes from time to time - most commentators say that this is part of investing in anything, not just precious metals. What matters is how an investor chooses to rebound from previous mistakes. This is what makes the Soros hedge fund decision to increase their gold-related holdings by four times their 2011 levels so fascinating for many.
As 2012 rolls on, it will be interesting to observe the Soros fund and see the level of profit the investor gains from a decision that many of those investing in gold feel are quite a savvy one. It might be another big win for George Soros.