Soros: “I Don’t Expect Gold To Go Down”
Monday, 8 April 2013
Soros has made headlines again this morning after an interview done in the South China Morning Post.
Excerpt of Soros Interview with South China Morning Post:
What is your view on gold?
A: That’s a complicated question. It has disappointed the public, because it is meant to be the ultimate safe haven. But when the euro was close to collapsing in the last year, actually gold went down, because if people needed to sell something, they could sell gold. Therefore they sold gold. So gold went down together with everything else.
Gold was destroyed as a safe haven, proved to be unsafe. Because of the disappointment, most people are reducing their holdings of gold. But the central banks will continue to buy them, so I don’t expect gold to go down. If you have the prospect of a crisis, you will have occasional flurries or jumps. So gold is very volatile on a day-to-day basis, no trend on a longer-term basis.
In the interview, Soros makes some somewhat contradictory comments about gold. Soros said regarding gold that he did “not expect gold to go down” due to central bank adding to their gold reserves.
Soros notes that “the public” has been selling gold because they are “disappointed” because gold is “meant to be the ultimate safe haven” and yet is has not acted that way despite the “euro being close to collapsing last year”.