More Filings From Large & Influential Investors Buying Gold

"Today one of the wealthiest men in the resource space said that in the very near future we should expect more filings from large and influential investors buying gold. Here is what Rule had to say: “We just had reports that both Paulson and Soros have been adding to their gold positions, which now total roughly $4 billion. It doesn’t surprise me that they are adding to positions. My suspicion is that in the coming months we are going to see more reports of large and influential investors doing the same thing.”

 

Today one of the wealthiest men in the resource space said that in the very near future we should expect more filings from large and influential investors buying gold. Here is what Rule had to say: “We just had reports that both Paulson and Soros have been adding to their gold positions, which now total roughly $4 billion. It doesn’t surprise me that they are adding to positions. My suspicion is that in the coming months we are going to see more reports of large and influential investors doing the same thing.”

 

“Certainly Mr. Paulson and Mr. Soros have to deal with large amounts of money. The fact that they are very prescient investors, both of them, in terms of futures markets and currency markets, probably adds to the reasons why they feel comfortable betting on gold.

Their traditional areas are so volatile and risky, so I understand the move. What I find interesting is the timing of the increase and what it says about the likely direction of the price of gold going forward.

 

I have told you that quantitative easing is simply counterfeiting and it is happening around the world. One of the reasons why we have seen so little volatility in the global markets is there is so much cash around because of the printing.

The central bank officials know this, and they are very leery about cutting off that source of cash to the market because they want the markets to stay quiet. This is coordinated action to some degree, but governments around the world are engaged in currency wars and competitive devaluations. 

These governments want their currencies lower. They want to maintain whatever competitiveness is left in their economies. They also want to reduce growing unemployment. They are also using the newly counterfeited money to buy newly issued bonds in order to keep up with their spending programs.

 

So the reality is these countries can’t stop quantitative easing. Their failure to stop quantitative easing is naturally leading to more gold buying. This environment could not be more friendly to gold bulls and I fully expect higher prices going forward.”

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