Investing in any commodity these days is a risky move, but that fact is not stopping billionaire George Soros from laying down some big bets on gold mining. Soros recently sold more than 37 percent of his hedge fund’s stock holdings, and the fund bought more than 19 million shares of a gold mining operation. Soros invested in Barrick Gold, one of the largest gold mining operations in the world. After Soros placed that investment, Barrack Gold’s stock jumped by more than 40 percent.
George Soros is the man that broke the Bank of England back in 1992, when he bet the UK would have to devalue the pound. Soros made more than $1 billion in fees and commissions, and his hedge fund partners made more than $7 billion on that bet. Soros made another interesting bet in 2012 when he bet Japan would have to devalue the yen after Prime Minister Shinzo Abe announced a new stimulus package that put enormous pressure on the Bank of Japan. The Soros Fund made more than $1 billion in less than four months on that investment.
Soros has been very vocal about China’s economic issues, and he put his money where his mouth is by shorting the yuan against the dollar and the German mark last year. George thinks the Chinese government will have to devalue the yuan. George Soros said the amount of capital reserves the country is pouring into their banking system to cover bad loans is unsustainable. The Chinese have also been vocal about not devaluing the yuan, so it is a Mexican style stand-off between hedge fund investors like Soros and the Chinese government. Most big time investors think China is heading for more financial trouble, so the Soros bet against the yuan could be another billion dollar plus return for the 85-year-old Hungarian-born investment guru.
The other Soros investment that appears to be a very good one is the new Argentina bond offering. The new president of Argentina recently got approval to offer more than $65.5 billion in bonds on the international bond market, and the Soros hedge fund was one of the first in line to buy those bonds. Soros has had his investment eye on Argentina for a couple of years. The Soros Fund invested in bonds when Cristina de Kirchner was president, and that investment is producing excellent returns.
The European Union is another topic that Soros mentions when he travels to speak at various economic forums. George thinks Greece will exit the European Union, and there is a good chance the UK voters will want to leave the EU as well. The banks in Europe are in trouble, and Soros expects that trouble to get worse in 2016, according to Bloomberg.com.
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