George Soros Casts Gloom on the Chinese and EU Economies, Goes Gold

Billionaire George Soros acquired international notoriety way back in late 1992, when against all odds he risked a fortune worth $10 billion when he shorted the British pound on what was a massive a single currency speculation. The amazing thing is that he turned to be right and during that one day trade, he is reported to have profited by a massive $1 billion.

Soros prepared the closing quarter for gloomy economic times, through cutting back his stock investments in the US by over a third, placing his bets against equities and banking heavily on gold. Quoting a government filling, Bloomberg, has reported that the value of the publicly disclosed value holdings of Soros Fund Management dropped by 37 percent to stand at $3.5 billion by close of March.

Gold Acquisitions

Prices of gold in general tend to push up when investors are afraid. This year, the precious metal has shot up by in excess of 20%. Over the first quarter, George Soros purchased Barrick Gold shares worth $264 million. This is the largest gold miner in the world.

By acquiring 1.7% of Barrick, Soros has made it the biggest US listed holding fund. The man who broke the Bank of England has in addition acquired 2.1 million bearing options of the popular SPDR Gold ETF.

Soros on the Chinese and EU Economy

George Soros, who amassed a staggering $24 billion fortune through engaging in savvy market wagers, recently has been warning of risks that stem from the Chinese economy. His argument is that debt-fueled economy of China resembles what was witnessed over 2007-8 in the U.S. at the onset of the international financial crisis.

In January, the retired former hedge fund manager said it was inevitable for the Chinese economy to experience a hard landing. He added that such a looming slump would make global deflationary pressures worse, dragging down global stocks and giving a boost to U.S. government bonds.

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In a recent interview, Soros said he is convinced that the EU is heading for collapse. He is convinced that out there, lots of risks are present for the global economy, not just from Europe and China.


George Soros commands global attention for his strong views on a diversity of issues that go beyond finances. Although it cannot be said that all of the bets taken by George Soros end up paying, it is a fact that he does have some rather extensive understanding of global macro-economic trades, and many experts believe it is important to know what he thinks. He has warned of a return to the 2007-8 global financial crisis triggered by the situation in the EU and China. So, many experts are keen to see whether this move on gold forms another channel of predicting the unravelling of the EU and placing his bet against the European currency.