Soros And His Gold Changes

George Soros’s investment strategy has not changed very much in its treatment of gold as an asset class.  He only changed the vehicle.  He drastically reduced his holdings of GLD and exchanged his stakes in some gold mining companies for other miners.  The logic is inescapable.  The lack of certainty around the actual bullion holdings in GLD is well-documented (at least in the blogosphere).  It makes more sense to own gold where it is most secure – in the ground as ore.  Gold stocks’ movements are less correlated with the underlying price of gold, so this move aligns the volatility of Soros’ precious metals holdings more closely with that of the rest of his portfolio.

Full disclosure:  No position in GLD.  Long GDX with covered calls.

About Anthony Alfidi 128 Articles

Affiliation: Alfidi Capital LLC

Anthony Alfidi is the Founder and CEO of Alfidi Capital. His firm publishes free investment research with honesty and humor.

Mr. Alfidi holds a Bachelor's degree in human resource management from the University of Notre Dame (cum laude) and an MBA in finance from the University of San Francisco. He is a life member of Beta Gamma Sigma, the academic honor society for business majors. He has been a private investor since the 1990s.

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