Nov 17, 2010
TORONTO – Billionaire investor and philanthropist George Soros may be cutting back on his gold bets, but he says the precious metal still has some kick to it, as long as conditions like low interest rates prevail.
“The conditions for (high) gold are pretty perfect,” he said during a speech in Toronto Monday evening to accept the Globalist of the Year award from the Canadian International Council.
“The big negative is that too many people know this and a lot of hedge funds are very exposed … Gold has a tendency to go parabolic,” he said, pointing at its tendency to fall as quickly as it rises.
In fact, gold fell for a third successive day on Tuesday to its lowest level in two weeks as a stronger U.S. dollar kept commodities under pressure, but spot gold was still above $1,300 an ounce.
Soros reduced some of his big bets on gold in the third quarter, trimming positions in miners including Barrick Gold Corp, Great Basin Gold and Newmont Mining. He left large positions in NovaGold Resources and Kinross Gold unchanged.
This article was posted: Wednesday, November 17, 2010 at 5:19 am