Soros "gold not safe"

[PennyPauper]

http://www.reuters.com/news/video/story ... annel=2602

We shall see.

[blackrabbit]

What I think he means by this is that when the whole monetary system crashes gold is the last thing standing, the ultimate bubble- there is nothing else to put money into that is gaining value. Of course it pops too, and a new currency system is created. You sell all yours before things stabilize, right at the height of the fear that will gripping the masses who will trade anything to get some of the shiny yellow metal. Trade it for real estate and you'll be the new landed aristocracy!

[Nickelless]

The difference between gold and FRNs is that nobody will end up wiping their butt on gold. Soros is such a joke.

But yeah, Blackrabbit, you have a point. The problem will be timing the peak for gold. I don't think we'll have to worry about the peak for a while, though. We're not even to first base in the meltdown.

[Jonflyfish]

If/when TSHTF and the blood is in the streets, hyperinflation will be at extreme. At that time I'll by my own property.
Sell metal on the street outside the bank for wheelbarrows of cash then immediately wheel it inside to payoff a fixed rate note with ease.
Its a perfect hedge against your own property. The best two asset to own in hyperinflation are metals and properties that have a fixed rate lien against them.
Nothing like a counter intuitive liquidation of good money for bad at just the right time.

[PennyPauper]

If/when TSHTF and the blood is in the streets, hyperinflation will be at extreme. At that time I'll by my own property.
Sell metal on the street outside the bank for wheelbarrows of cash then immediately wheel it inside to payoff a fixed rate note with ease.
Its a perfect hedge against your own property. The best two asset to own in hyperinflation are metals and properties that have a fixed rate lien against them.
Nothing like a counter intuitive liquidation of good money for bad at just the right time.

Maybe I can pay off my mortage before I die. Only problem is you might get mobbed if they knew you had PM's
Works in theory but could be risky when trying to pull off.

mortgage n. a document in which the owner pledges his/her/its title to real property to a lender as security for a loan described in a promissory note. Mortgage is an old English term derived from two French words "mort" and "gage" meaning "dead pledge."

[franklin]

I totally agree with jonflyfish's statement regarding the fixed rate debt. I have never understood the constant imploring of preppers toward ' you first have to get rid of any debt you have' . But, as he says, make sure you have fixed rate debt. My church has a 2.4 million note for a large addition we built last year and the finance guys have refused to listen to some of our concerns about future skyrocketing interest rates. We have the option now of locking in a 4.79% rate for 20 years. Surely it can't go much lower than that.

[Copper Catcher]

You cannot believe a word he says..... the reason:

George Soros doubled his investment in the world's largest gold fund – just weeks before claiming investing in the precious metal is now the "ultimate bubble".

Mr Soros – a legend in investing circles for his $10bn (£6.37bn) bet against the pound in 1992 which forced sterling out of the European exchange rate mechanism – increased his stake in the SPDR Gold Trust in the last quarter of 2009.

Regulatory filings show that his $8.8bn investment vehicle, Soros Fund Management, raised its stake in exchange-traded fund SPDR by 3.7m shares to 6.2m shares in the three months ending December 31, 2009.

The new shares were bought at a price of $421m, taking his total holding in the fund to $663m at the end of December.

In addition, Mr Soros's investment vehicle owns 11,000 call options that will permit it to buy an extra 1.1m shares should gold prices move higher.

Soros Fund Management also increased its stake in Canadian-based gold producer Yamana Gold, buying 60,880 shares to take its total position to 85,880 shares, worth $973,314 at the end of December.

However, the actions of the Mr Soros's investment fund however seem to be at odds with his own viewpoint. During the World Economic Forum in Davos in late January, Mr Soros said: "When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold."

Gold hit a new high of just over $1,225 an ounce in December, having rise 40pc in the prior 12 months, and touched an all-time high in euros of €818 an ounce earlier this week. On Wednesday, gold was trading in New York at $1,115.55 an ounce, having hit a one-month high of $1,126.85 earlier in the day.

Mr Soros is not alone in increasing his stake in the SPDR, with new filings also showing that China Investment Corporation (CIC), Beijing's main overseas investment fund, taking a 0.4pc stake in the fund worth $155.6m.

CIC's investment is equivalent to just 0.4pc of the 33.9m ounces of gold maintained by the Chinese government, but is part of a growing trend of major funds investing in the metal.

The World Gold Council said on Wednesday that pension funds began actively investing in gold last year, viewing the metal as a long-term safe haven.

Aram Shishmanian, the council's chief executive, told Reuters that although the organisation does not forecast prices, he believes the gold market will be "robust' in 2010 in spite of an 11pc global drop in demand last year because of weaker industrial output.


http://www.telegraph.co.uk/finance/pers ... ubble.html

[PennyPauper]

Soros has always played the currency game.Making millions then billions.He was behind some major currency collapses.Do you think he might be planning the same for gold? He either wants to control or destroy. He is more interested in power than money. Don't be surprised when he reverses his holdings and bets the other side.

[blackrabbit]

Gold is the metal than can be hammered into extremely thin sheets (approaching a small number of atoms). Therefore a gold bubble can become extremely large before it pops, as the bubble's wall just becomes thinner. Soros knows the wall is still pretty thick at this point, but will dump his gold before it all goes pop. He and his billionaire buddies will actually be sticking in their pins during the end of the thinning causing the pop. You just got to sell before Soros.