George Soros' Biggest Buy Is New Gold ETF

As reported by Goldseek, George Soros' Quantum Fund's biggest buy of the quarter is the iShares Gold Trust.

Many of those calling gold a bubble have done so simply on the basis of George Soros’s recent comments regarding gold being the ultimate asset bubble or becoming the ultimate asset bubble. Soros’s comments were somewhat cryptic and had some commentators claim that Soros was saying gold is a bubble and others claiming that Soros was simply saying gold would become the ultimate bubble.

George Soros said subsequently “It’s all a question of where are you in that bubble ... The current conditions of actual deflationary pressures and fear of inflation is pretty ideal for gold to rise.” This would suggest that he is bullish on gold, contrary to much of the media headlines and commentary.

As ever with hedge fund managers and large investors it is important to watch what they do rather than what they say. In the last quarter, Soros's biggest buy wasn't actually a stock. His firm spent $64 million on shares of the iShares Gold Trust (IAU).

When George Soros begins liquidating his gold holdings, it may be an indication that the gold bull market has run its course and it is time to reduce allocations.

Recently, he sold over 500,000 shares from Quantum's GLD holdings. The two amounts almost match up in terms of dollar value. So, instead of abandoning gold, Soros was reallocating. iShares Gold Trust has lower fees: 0.25% instead of GLD's 0.4%.