Davos 2010: George Soros warns gold is now the 'ultimate bubble'

[bw]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

That is one terrible graphic. Taken at face value, it says institutions and governments will be holding no gold after it hits $1500. Need one chart for gold price vs year, and a completely separate chart for ratios of gold holders. They don't fit.

[karim0028]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

That is one terrible graphic. Taken at face value, it says institutions and governments will be holding no gold after it hits $1500. Need one chart for gold price vs year, and a completely separate chart for ratios of gold holders. They don't fit.

No, i believe the chart means they will be buyers at that time..... It makes no mention of when they sell...

[phirang]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

The Fed is tightening.

I know what that will do to gold prices in the short-term.

We could see a $100 swoon this QUARTER.

I'm selling my remaining gold shares today and/or hedging with PUTS.

[bill]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

he didn't say anything. take the blanket off his lap. put it over his head.

Pull the blanket off and expose all his derivative positions.

Derivatives are the “Stealth Financial Weapon” used determining success or failure resulting in that “Unit of Something Else”.

[hayekvindicated]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

The Fed is tightening.

I know what that will do to gold prices in the short-term.

We could see a $100 swoon this QUARTER.

I'm selling my remaining gold shares today and/or hedging with PUTS.

Im hoarding $$$ in my brokerage account and will buy stocks or commodites after a big drop. Yes the Fed is certainly tightening - they have been shrinking the monetary base markedly. This could trigger another crisis and provide some utterly outsized trading opportunities.

Shorting Sterling against the Dollar looks like a no brainer at the moment.

[ST]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

Im hoarding $$$ in my brokerage account and will buy stocks or commodites after a big drop.

you and everyone else... as they say, the market hates long lines...who knows what will happen now

[jtabeb]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

you and everyone else... as they say, the market hates long lines...who knows what will happen now

You pull the plug when you can get THE MOST people holding cash. Anyone thought of this?

[hayekvindicated]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

you and everyone else... as they say, the market hates long lines...who knows what will happen now

No long lines (or any lines) where I'll be standing. Im going to buy Japanese stocks.

[ST]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

No long lines (or any lines) where I'll be standing. Im going to buy Japanese stocks.

Bill Bonner fan?

[hayekvindicated]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

Bill Bonner fan?

Faber's advice. However Ive done some of my own research on this too and its the most contrarian play there is - the individual companies are actually very well capitalised, they are cash rich and many make excellent products that will continue to sell. Many are selling at a discount.

And no one wants to touch Japan with a ten foot pole. I like it that way.

[bill]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

Faber's advice. However Ive done some of my own research on this too and its the most contrarian play there is - the individual companies are actually very well capitalised, they are cash rich and many make excellent products that will continue to sell. Many are selling at a discount.

And no one wants to touch Japan with a ten foot pole. I like it that way.

Not everybody.
I still own yen purchased in 07. Bonner/Faber entry cost is higher, unless of course they made the call to purchase yen in 07.
Japan companies selling to China look interesting. Japan did a good job selling to US for years and should do the same in China.

[strittmatter]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

The deals I’ve seen are not quick trades, but are investments that will pay off after or due to systemic changes that his organization attempts to mold at multiple levels, including the national / supranational dialogue. A strategy / investment thesis is developed by him or his subordinates (with his ultimate approval), once the thesis is fleshed out then the gears are put into motion. The idea is to position his investments so that once the structural change is affected, the investment benefits from first mover advantage (and/or is the infrastructure for such change). The public statements are part of the process to affect these changes. He is usually brought in, depending on the situation, to seal the deal. His presence tends to impress politicians and/or decision makers.

I'll buy that.

I wonder why George likes Marengo_Mining. Could certain base inputs such as Molybdenum be considered an up-and-comer, for instance?

china-to-continue-driving-molybdenum-demand

The successful raising follows a A$16.3 million (C$14.8 million) Canadian placement, which was underpinned by George Soros' Quantum Partners LDC and Marengo's largest shareholder, The Sentient Group, along with other North American-based investment funds.
As a result of this capital raising, Quantum Partners LDC has acquired a 19.9% stake in Marengo. The Sentient Group has increased its holding in Marengo to 26.65%.
The funds raised will be used to accelerate exploration and development of Marengo's 100% owned Yandera Copper-Molybdenum-Gold Project in Madang Province, Papua New Guinea (the "Yandera Project") including new district exploration programs targeting further additions to its existing resource inventory.

"I welcome Quantum Partners LDC-the Soros Group to our share register. Together with The Sentient Group, we now have some of the world's most influential investment funds on our register and supporting our development strategy."

[jtabeb]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

When, eventually, we do sell gold we bought in 2001 it will not be to buy a dollar denominated asset. The dollar, as the underlying unit, will have been replaced by something else. If you can figure out what that is before anyone else, you can make some money. Soros is the master of that game.

It would be REALLY FUNNY if that "something else" turned out to be gold, wouldn't it? Then, WHAT would you do?;)

What are you doing with your dollar holdings again, since you yourself say it is going to be replaced?

[hayekvindicated]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

Not everybody.
I still own yen purchased in 07. Bonner/Faber entry cost is higher, unless of course they made the call to purchase yen in 07.
Japan companies selling to China look interesting. Japan did a good job selling to US for years and should do the same in China.

Buying Yen and buying Japanese stocks are two entirely different plays. I bought the Yen at the start of 08 and sold it in October of 08 (and piled into gold). if I had any yen Id sell them - the carry trade play is over and the Yen will lose a lot of value because of the Japanese government's atrocious fiscal position.

But well run Japanese companies are an entirely different matter. The only thing I cannot make up my mind on is whether I should buy now or when inflation gets really bad in Japan. I doubt Japan will see hyperinflation any time soon - its external net asset position is very healthy and it has more than a trillion dollars in forex reserves. They'd have to burn through all that before they have a serious fiscal crisis. But the Yen could decline a lot over time.

Japanese companies on the other hand are quite well run and many are global players that could benefit from a weakening Yen. And the stocks are ridiculously undervalued. Its the only stock market in the world now where you can find value. Everywhere else, the reflation has really driven P/E ratios into the stratosphere.

[ThePythonicCow]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

It would be REALLY FUNNY if that "something else" turned out to be gold, wouldn't it? Then, WHAT would you do?;)

er eh ... brag to the other hobo's around the campfire that I knew jtabeb 'back when' .