What are we to make of the mixed messages George Soros is sending out?
On January 28, 2010 investor and financier Soros told the Daily Telegraph that gold is the ultimate bubble:
Billionaire financier George Soros is the latest to enter the gold bubble debate, warning that with interest rates low around the world, policymakers are risking generating new bubbles which could cause crashes in the future.
Speaking Thursday to The Daily Telegraph, on the fringe of the World Economic Forum, 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,” he added.
If you were an investor following Soros and decided to sell your gold or refrain from purchasing it for your portfolio as a result of his comments, than today you might be a little bewildered, as Mr. Soros’ Soros Fund Management LLC more than doubled its stake in gold in the 4th quarter of 2009:
Billionaire George Soros’s Soros Fund Management LLC more than doubled its holding in the biggest gold exchange-traded fund in the fourth quarter after bullion advanced 8.9 percent to a record.
The $25 billion New York-based firm became the fourth- largest holder in the SPDR Gold Trust, adding 3.728 million shares valued at $421 million, according to a filing with the U.S. Securities and Exchange Commission yesterday. Its investment was worth about $663 million, the fund’s largest single investment, as of Dec. 31.
The 4th quarter of 2009 saw gold rise to new historic highs in terms of dollars, and Soros was buying.
Perhaps Soros meant that gold will become the ultimate bubble at some point in the future and was not referring to it being a bubble at current price levels.
Soros is well known for having the inside scoop on not just precious metals, but currencies, and has been blamed for currency collapses several times in his investing career. In late 2008 / early 2009, with oil in the $40 range, Soros suggested that the price of oil must reach at least $70 a barrel for a variety of reasons, including the current cost of production as well as to help usher in a new alternative energy paradigm. Today, oil is around $75 per barrel.
Now Soros is buying gold – and lots of it.
What does it mean? We’ll leave our readers to decide, but like Soros, we believe gold is the next big bubble, and it’s still in the process of being blown.
As the global economy continues to deteriorate over the next several years and the people realize their governments are unable to mitigate the crisis, gold will likely become a key asset of last resort.
I can’t afford to invest in gold. Instead I will invest in raising a garden and livestock. I can hunt and fish but i can’t eat gold.
I cannot afford gold either. I will buy heirloom seeds and other survival goods. If I have left over money I will buy gold.
We have a large garden, some Boer goats, and some silver coins. We can’t afford to buy gold but you have to have something. Just buy a little at a time from your local coin shop. when the dollar is worthless even a little silver helps.
Of course food, water, shelter, and a way to protect it all from the unprepared masses should come first. There’s going to be an awful lot of desperate people out there who won’t care about you- only about what you have.
Hell…what average American can afford it? Silver, Silver, Silver my friends. Made some overtime this week? Silver. Sold some junk at the flea market? Silver. Tax refund? Silver.
Bob Chapman states that Soros is a member of the Illuminati and has a history of steering the “mass” investors the wrong way.
However, look at his statement – “The ultimate asset bubble is gold.” Ultimate can have two meanings here – 1) the biggest of them all, or 2) the final (causal) event. He could be using the 2nd meaning. Just my 2 cents.
Chris,
I think you are correct, ultimate as in, we’ve burst every other asset class which we don’t have the wherewithal to re-inflate, and fear will eventually drive people into gold (it hasn’t yet) when the SHTF.
Ultimate = final. It makes more sense with his actions (and he is consistent) and more sense grammatically (he’s not a native English speaker, people tend to use words more literally than colloquially in a non-native tongue).
As I thought some more, now I’m curious wrt the first 2 posters. I can’t afford to buy land for a farm, it takes many gold coins to do that. How is that cheaper? I would like to buy a homestead farm, lots of heirloom seeds (and don’t forget the equipment not only to farm but to preserve the food … it seems many are not factoring that into the little shoebox of seeds they are sticking into the basement), and the trimmings, but WOW that adds up quickly 🙁
Hi, I’m Nico from Belgium, if interested
watch the Keiser Report on RT today ( 18 feb) it’s about the coming revolution in the USA.
Good luck to you all.
hey bleak, i started getting ready in 1972. i have my land and equipment and most important i have a year round creek with fish and plenty of good spring water. deer and turkey abound and a small cow herd. its not too late to get started. you can be self sufficant on 2 or 3 acres. no cows but you can have rabbits chickens hogs and a nice big garden and maybe a milk cow
I cannot say that I’m certain how far shit is going to fall, but I know its gonna get ugly. In a widespread Katrina like scenario (even at a lower intensity) essentials would reign supreme in my experience. I like silver and can’t afford gold. Junk silver is a great buy if you have a fair dealer nearby. I would rather a $1100 black rifle, some ammo, maybe a hundred or so pounds of rice,beans,corn,wheat,etc… than an troy oz. gold. Nothing against owning it though.
I have little need for it being in the south, but for those in the cold Northernlands coal would seem like a great investment. I thought of this the other day and can’t say I’ve heard anyone mention it as far as prepping goes(I’d imagine someone has though) It’s not expensive and lasts forever.
Okie don – you’ve got that right, rabbits, chickens, and hogs are excellent and relatively sustainable food base. Earthworms are virtually free chicken food once a colony is established and also make great compost. But I digress.
That’s right Nico, there’s a new REVOLUTION brewing in the USA, and A NEW BURST , A NEW BREATH OF FREEDOM is about to unload on both Democrats and Republicans alike. They know it and they are AFRAID, VERY AFRAID, as they should be.
We The People are going to take our country back, and when we do …… we willl have hearings, trials, and issue judgements, and these lying, stealing, thieving traitors will get their just reward!
God speed them to Hell or Europe, whichever comes first!
On an economic note, both China and India are encouraging their citizens to buy precious metals, particularly GOLD, and it takes a lot more Rupees than Dollars to buy an oz. If your resources are limited, then of course, buy seeds and food for storage.
When the changes come, GOLD will probably not be very useful, except as a store of value for your personal wealth, or your family’s wealth, until we emerge on the other side of the changes.
Then it will be extremely valuable, and potentially it will be the basis for a New World Currency, so having a little will mean a lot. Until then silver is your best bet, and again, I believe metal money is real money for barter and purchases DURING the changes.
With all my other bases covered, I am still saving quarters, halfs, and dollars from my daily change and have about $2,000 in metal money / mad money that fits neatly into a 64 oz Tide plastic bottle with the built in handle. Grab it and go.
With respect to those who will note that there is not now, has never been, and never will be enough gold to support the fiat money in circulation, I understand the dilemma and expect each nation’s gold, PGMs, silver and copper, POST POLE SHIFT; to represent a PERCENTAGE of the NWC which each nation will be allowed to issue to “reset” civilization.
“With all my other bases covered, I am still saving quarters, halfs, and dollars from my daily change and have about $2,000 in metal money / mad money that fits neatly into a 64 oz Tide plastic bottle with the built in handle. Grab it and go.”
Hey Zukadu…
I’ve heard of others collecting change but what good is it if it’s based on the fiat system just like paper bills? At least the pre-64 stuff is 90% silver.
Eric: I own a precious metals mine, so I effectively have all the gold and silver I need to protect my wealth until we emerge on the other side of the CHANGES.Â
The metal money is “bug out money” which, I think, with all my other bases covered, is a a good substitute for script in an emergency situation when access to ACCOUNTS may be frozen at worse, and limited at best.
I might be wrong, but I don’t think so. 🙂
I his book Alchemy of Finance,  Soros says the best way to make money is to identify a false trend or bubble and hop on and then get out before everyone else realizes it is a bubble.  So him calling gold a bubble and buying it at the same time is not condradictory to the statement  in his book. Â
I believe gold may be in a bubble because so many people  have been buying it out of fear of hyperinflation.  The fed can tighten the money supply just like it can expand it.  Interest rates can go up the dollar can get stronger relative to other currencies and gold could fall.  I am not saying that I know what will happen I am just saying that there are various scenarios and it is not a sure thing that we will see gold at 2000 or 5000. Â
I believe that the peices are in place and there is the possibility of many bad things happening but things are not set in stone. Â Prepare for all possible outcomes. Â If you can afford it buy some precious metals but I think you should have a stockpile of you’re daily necesities first and some guns and lots of ammo just in case. Â Prepare for the worst but hope for the best.
I would not worry about Gold and Silver. If you have food and water, you will be able to get gold and silver without a problem.
I would hit Home Depot or Lowe’s etc. and  buy some fruit and nut trees for your yard, get some blueberry, Raspberry and black berry bushes as well. Plant these food bearing plants now so that you have food for years ahead in the future. This food will also allow you to barter for things. Wine is a good barter item. Put food away, buy dehydrated food and learn to can. Grow a garden in your yard.
Learn how to fish. Especially if you live near water. Hit Walmart and buy some survival gear. Rain Poncho, sleeping bags, small tent. Don’t get bright colors, you might want to remain hidden.
Plan a bug-out route and drive it to see what your options are and where you would go. Maybe stay off main roads.
Put together a doomsday notebook with information on wild edible foods, check list of foods, equipment etc.
Start thinking like the disaster is now and rehearse for it. When it comes, you will be light years ahead of many others with their heads in the sand.
I would discuss this situation with close family or friends. Form a small group. keep it small and make plans on strategies for survival.