Is Soros Behind Gold's Price Increase?
George Soros started buying gold again. John Paulson too. Is that what's behind gold's recent price jump?
Gold started moving up over the last couple of weeks. Even as Wall Street finishes out its typical snooze before Labor Day, the price of gold made some noise - although hardly anyone's paying attention. Sure, you could find the stories about Soros, and somewhat less about Paulson, but much more attention has been focused on whether the Fed is going to launch QE3 in the fall, along with what's going to happen next in Europe.
The fact that no one's paying attention much attention to gold makes me wonder whether gold may finally break out of the range its been in for about a year. If you check the price over the last 12 months or so, you'll find it's been shifting between $1,575 and $1,925, mostly on the downside. Sure it's been below $1,575, but never for long.
If everyone were jumping up and down now, I'd probably not be thinking that gold may be on the verge of a serious break to the upside. But the relative silence of the usual suspects in the media, especially the financial media, reflects a disenchantment with gold. And if you've been following the great gold bull market that started in 2001, you'll realize that it's just when most people give up on gold and start claiming it's going down, or it's not really an investment, or it's big bull market is over, (or any of the other dozens of anti-gold comments you get from those who know absolutely nothing about gold or the reasons anyone would own gold) that gold takes off to newer highs.
Now, I'm not saying we're going to new highs. But Soros is no dummy (whatever else you might think about him) and his buying of gold tells us something.
One thing it doesn't tell us is that George Soros is the reason that gold will go up. I know some people who think that Soros is some sort of master manipulator of markets. I don't know whether he can or does manipulate markets from time to time. But I do know that his buying and selling of gold over recent years hasn't caused the gold trends up or down. He's simply smart enough to spot the trends and takes advantage of them. If his trading goosed the market up more than it might have gone, that would be news to me.
So what happens when Soros sells his gold at some point? Well, if you're a trader of gold, then I suppose that would be big news for you, just as it must be big news now that Soros is buying.
On the other hand, if you've been riding the gold bull these last 11 years, and if you understand the whole point of owning some gold, as well as the principle that you ride a bull all the way, or at least as far as you can without being greedy, then you'll ignore what Soros does or doesn't do, at least when it comes to gold.
Gold is headed for higher prices at some point. I don't know when. But when it takes off, I won't be surprised.
Meanwhile, with most markets in snooze mode, we're gearing up for action after Labor Day. Some think the stock market's going to take a dive, or that we're going to have another 2008-style collapse. I have no idea. But I'm ready for it if it happens.
Which means I'm going to go into my own snooze until after Labor Day. And if you read our last post, you'll understand what I mean when I say I'm "entitled" to it.
Gold started moving up over the last couple of weeks. Even as Wall Street finishes out its typical snooze before Labor Day, the price of gold made some noise - although hardly anyone's paying attention. Sure, you could find the stories about Soros, and somewhat less about Paulson, but much more attention has been focused on whether the Fed is going to launch QE3 in the fall, along with what's going to happen next in Europe.
The fact that no one's paying attention much attention to gold makes me wonder whether gold may finally break out of the range its been in for about a year. If you check the price over the last 12 months or so, you'll find it's been shifting between $1,575 and $1,925, mostly on the downside. Sure it's been below $1,575, but never for long.
If everyone were jumping up and down now, I'd probably not be thinking that gold may be on the verge of a serious break to the upside. But the relative silence of the usual suspects in the media, especially the financial media, reflects a disenchantment with gold. And if you've been following the great gold bull market that started in 2001, you'll realize that it's just when most people give up on gold and start claiming it's going down, or it's not really an investment, or it's big bull market is over, (or any of the other dozens of anti-gold comments you get from those who know absolutely nothing about gold or the reasons anyone would own gold) that gold takes off to newer highs.
Now, I'm not saying we're going to new highs. But Soros is no dummy (whatever else you might think about him) and his buying of gold tells us something.
One thing it doesn't tell us is that George Soros is the reason that gold will go up. I know some people who think that Soros is some sort of master manipulator of markets. I don't know whether he can or does manipulate markets from time to time. But I do know that his buying and selling of gold over recent years hasn't caused the gold trends up or down. He's simply smart enough to spot the trends and takes advantage of them. If his trading goosed the market up more than it might have gone, that would be news to me.
So what happens when Soros sells his gold at some point? Well, if you're a trader of gold, then I suppose that would be big news for you, just as it must be big news now that Soros is buying.
On the other hand, if you've been riding the gold bull these last 11 years, and if you understand the whole point of owning some gold, as well as the principle that you ride a bull all the way, or at least as far as you can without being greedy, then you'll ignore what Soros does or doesn't do, at least when it comes to gold.
Gold is headed for higher prices at some point. I don't know when. But when it takes off, I won't be surprised.
Meanwhile, with most markets in snooze mode, we're gearing up for action after Labor Day. Some think the stock market's going to take a dive, or that we're going to have another 2008-style collapse. I have no idea. But I'm ready for it if it happens.
Which means I'm going to go into my own snooze until after Labor Day. And if you read our last post, you'll understand what I mean when I say I'm "entitled" to it.
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