Soros in the gold market could be a bad thing.
Some History:
In March 1993 Soros proclaimed, with great publicity, that the price of gold was about to rise sharply: that he had just obtained "inside information" that China was about to buy huge sums of gold for its booming economy. The next month, again with great publicity, he purchased a 20% stake in Newmont Mining, a Denver-based gold company, from controllers Sir James Goldsmith and Lord Jacob Rothschild
The much-hyped gold purchases by Quantum and Goldsmith, together with the Newmont deal, set the market alight. Soros was able to trigger a rush into the buying of gold, causing prices to rise more than 20% in four months, the highest level since 1991. Typically, once the suckers rushed in to push prices even higher, Soros and his friend Sir James Goldsmith secretly began selling gold at a huge profit.
By August of that year gold fell to $368, below its peak of $400,50. The London Sunday Times pointed an accusatory finger at Soros, claiming he had sold two to three million ounces. |
