Sunday, April 7, 2013

Soros’ Thumbs Down: Gold Has Been Destroyed As A Safe Haven





From BI: There's a new interview with George Soros out in the popular Hong Kong newspaper the South China Morning Post.  A lot of the interview is about the Chinese development model, Chinese stocks, real estate, etc.  There's also an interesting section about gold.

Q: What is your view on gold?

A: That’s a complicated question. It has disappointed the public, because it is meant to be the ultimate safe haven. But when the euro was close to collapsing in the last year, actually gold went down, because if people needed to sell something, they could sell gold. Therefore they sold gold. So gold went down together with everything else.

Gold was destroyed as a safe haven, proved to be unsafe. Because of the disappointment, most people are reducing their holdings of gold. But the central banks will continue to buy them, so I don’t expect gold to go down. If you have the prospect of a crisis, you will have occasional flurries or jumps. So gold is very volatile on a day-to-day basis, no trend on a longer-term basis….

No comments:

Post a Comment