Thursday, 29 September 2016
Last updated 13 hours ago
Mar 2 2010 | 12:39pm ET
Gold may be a “bubble,” according to George Soros, but it’s been a profitable one for his Soros Fund Management. And not one that the hedge fund thinks will be bursting any time soon.
Soros more than doubled its bet on the precious metal in the fourth quarter, according to a regulatory filing. The $25 billion hedge fund boosted its investment in the SPDR Gold Trust by 152% over the last three months of the year, making it's the fourth-biggest investor in the exchange-traded fund.
Though the price of gold is down about 9% this year, it rose 21% during the fourth quarter, while Soros was buying up more than 2.4 million shares of the SPDR gold fund.
In January at the World Economic Forum at Davos, Soros called gold “the ultimate asset bubble.”
But Soros is not alone in thinking gold has farther to rise before its inevitable fall. Barclays, Goldman Sachs and HSBC all predict the metal will rise at least another 10% this year.