Gold Fever: Why Investors Rush to Buy Gold
SputnikNews.com
22.05.2016
Demand for gold rose by 21 percent in the first quarter of 2016. Recently, billionaire George Soros invested nearly $390 in gold stocks, having decreased investments in other assets. Shortly after, large hedge-funds followed the example of the legendary US investor.
Between January and March 2016, Soros Fund Management established by George Soros increased investments in gold market assets, according to the company’s data.
Particularly, the fund bought shares worth $264 million in Canada’s company Barrick Gold, one of the world’s leading gold producers. It also bought an option for nearly 1.05 million shares ($123 million) in SPDR Gold Trust, the world’s biggest gold exchange fund.
Soros also made bets on a drop in the US stock market, having decreased investments in stock assets. In the first quarter, the value of Soros Fund’s exchange-traded assets dropped by 37 percent, to $3.5 billion.
Other big investors have followed Soros’ course toward the yellow metal. Former Soros partner billionaire trader Stanley Druckenmiller said in early-May that gold became his favorite asset in a time of low interest rates.
According to media reports, Druckenmiller, whose net worth is estimated at $4.4 billion, is making long-term investments in gold while holding short positions on US companies’ shares.
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