Deconstructing Soros

At Seeking Alpha, the number of articles on gold have diminished over the last month. They no longer show up in the "most popular" list, except for this one:

It's not about gold per se, it's about gold and George Soros. Peter Cooper has deconstructed Soros' "ultimate bubble" remark at Davos to mean that Soros is talking his book while looking for a convenient entry point.

Newspapers like the normally sensible Daily Telegraph fell for his ruse, immediately jumping the gun to a prediction about a massive tumble for the yellow metal. Yet Soros said no such thing.

He merely pointed out what even the most ardent gold bug would concede, namely, that if you study the history of financial crises, then the credit-induced asset price inflation causes them moves from one asset class to another until it reaches gold as the ‘ultimate bubble’ or the last of the bubbles.

Cooper is of the opinion that the next bubble to climax is in U.S. Treasuries, which will be followed by one in gold.


As far as Soros jumping in, he already has according to GuruFocus.com. Between June 30th and September 30th, Soros increased his holdings in the SPDR Gold Trust from 4,900 shares to 2,450,320. As of Sept. 30th, he had 5.48% of his portfolio in GLD.