George Soros Expect the Price of Gold to Surge in a Period of 3 Months

When the billionaire and the chairman of Soros Fund management speaks, everyone surely ought to listen. In fact, as the CEO and co-founder of the conglomerate, iBillionaire says, “Soros has made a lot of money in the financial market so definitely, people must trust him on this one”. But what is George Soros actually saying?

George Soros is referring to the financial situation in China. According to him, the financial crisis is comparable to the one experienced in United States in the fiscal year 2008 on The economy in this country being driven by debt, a scenario that was prevalent in Unites State, before credit markets eventually dried up, sparking a global recession.

While attending a society event in Asia, George Soros pointed that the credit growth number in China were particularly frightening. Reports has earlier shown that new credit issued in the country was 2.34 trillion in local currency, ahead of the analyst forecast of 1.4 trillion yuan just a few months earlier. Most of the money that circulated by banks across the country was practically repaying bad debts and keeping loss-making businesses alive.

Soros, the man who “broke the Bank of England” revealed that he was actually betting against the country. He had purchased $264 million worth of shares at the leading gold producer, Barrick Gold and acquired 1.1 million worth of shares at SPDR Gold ETF, a company involved in global gold exchange pricing.
Read more on Billionaire Soros Cuts U.S. Stocks by 37%, Buys Gold Miner

Soros wasn’t the only one sounding caution about the situation in China. Stanley Druckenmiller, who served as the portfolio manager at Soros Fund Management when the company took on the Bank of England has also warned of China crisis depicting that it is in the midst of a quite dangerous and rare explosion of debt. Jeff Gundlach, the popularly so called the “king of the bond market” too believe Gold prices will soar even to $1400 an ounce.

It has only been three month since then and the Gold for immediate delivery has jumped 16 percent, the greatest quarterly surge ever felt since the early 80s. According to Blomberg generic pricing, shares of the Toronto-based Barrick Gold are already up twice as from the beginning of this year as the miners try to accelerate cross-cutting efforts and reduces debt. By March 31st this year, the company was up 39 percent.

George Soros has already returned money he owed to investors five years ago and his NY based hedge fund company is now managing his own wealth.

About George Soros

George Soros is a business magnate, a philanthropist and an author. A part from his knowledge of the financial market, Soros is a committed supporter of America liberal and progressive leaders. He has donated more than $11 billion to various philanthropic causes and has played a crucial part in the peaceful transition from communism to capitalism in Europe. He is also an author and the Chairman of Open Society Foundation.