There are plenty of reasons to buy gold; buying gold just because Paulson and Soros bought gold is a fool’s game.
For years, I have analyzed Form 13F Reports filed by institutional investment managers with the U.S. Securities and Exchange Commission (SEC). An institutional investment manager exercising discretion over $100 million or more is required to report holdings on Form13F to the SEC.
Not only do I routinely trade gold and silver in my hedge fund, I also provide recommendations on gold and silver to both long-term investors and short-term traders of my investment alert services. One of the pleasant surprises of the last two years has been the large number of bullion dealers who have become subscribers.
On August 14th, I had just sent a bulletin out to subscribers stating that our rating for gold and silver for the short-term was neutral with a negative bias. The bulletin stated that subscribers who were bullion dealers may consider maintaining less than neutral inventory and less than normal long positions. Minutes later, 13Fs started hitting. The two that generated headlines in the media were from billionaire managers John Paulson and George Soros.
Paulson purchased 4.53 million shares of the SPDR Gold Trust (GLD). Paulson also added to his holdings of NovaGold Resources (NG), maintained his position in Barrick Gold (ABX) and reduced his holdings inGold Fields (GFI).
Soros increased his position in GLD to 884,400 shares from 319,550 shares.
I always receive lots of emails from investors, after the media headlines about Paulson and Soros buying gold, the flood gate of emails opened. …Read more at Forbes
