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Friday, March 6, 2015

Billionaire Hedge Fund Managers buying gold as the price drops and retail investor flee: (they probably just don't understand the global economy)

Bloomberg 2/1/15
(Bloomberg) -- Hedge funds are the most bullish on gold in more than two years, betting the metal’s allure will strengthen as slowing economies in Europe and Asia threaten U.S. expansion.
Speculators increased their net-long position by 80 percent this year, U.S. government data show. The U.S. economy expanded at a slower-than-forecast pace in the fourth quarter and Federal Reserve officials acknowledged global risks at the end of their policy meeting last week.
Weaker foreign expansion has increased speculation among investors that the Fed will wait longer before raising U.S. interest rates.
If we’re in a really bad global economy and we have more downbeat news here, the motivation for the Fed to raise interest rates isn’t there,” Marty Leclerc, the chief investment officer at Barrack Yard Advisors who oversees $400 million in assets, said by phone Jan. 30. “That would hence make gold more attractive if everyone is debasing currencies.”

 George Soros;

Soros Fund Management more than doubled its investment in the SPDR Gold Trust (GLD) to 884,400 shares, a U.S. Securities and Exchange Commission filing for the quarter holdings showed.  (newsmax 3/3/15)

John Paulson:

Paulson & Co. increased its holdings by 26 percent to 21.8 million shares.
Between these two funds alone, that’s a total of $3.5 billion secured in the yellow metal.

(newsmax 3/3/15)

“The negatives we see include stretched valuations and earnings headwinds later this year, including a strong dollar, which reduces the translated earnings of foreign subsidiaries,” Einhorn said Wednesday on a conference call discussing the reinsurer’s results. “From a macro perspective, we are worried that emergency policies are now failing.”
Einhorn said he is maintaining wagers on gold and against the Japanese currency and France’s sovereign debt. (Bloomberg 2/17/15)

Kyle Bass:

Bass: I'd Much Rather Own Gold Than Paper (bloomberg 3/5/15)

Jim Simons
Billionaire Jim Simons Bought $94 Million of Barrick Gold Corp (motley fool 1/20/15)
  Simons is the founder of Renaissance Technologies. Since launching the company’s flagship Medallion Fund in 1989, he has averaged over 35% annual returns for clients after fees. Today, Simons is widely considered to be the most successful hedge fund manager of all time.

And even gold's biggest critic: Martin Armstrong went to jail for 11 years rather than give up his personal stash of hidden gold bars and coins as compensation for the victims of his stock swindle.  He still owns all that gold, even as he advises others to sell.

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