George Soros, the billionaire speculator, has added to his holdings of gold.
Well, not quite. He has bought more shares of a firm that promises to buy gold of his behalf, or gold futures, or someone else’s promise to buy and store gold.
The question now is this: Did the organization that sold him the promises to buy gold then go out to buy enough gold bullion to cover this purchase by Soros?
That is always the question if you do not take delivery of low-commission bullion gold coins.
Soros may never bother to take delivery of gold. He may be buying digits that are said to represent gold. He will sell these digits some day in exchange for other digits called the U.S. dollar. Then he will do something with these dollar-digits.
Here is what is important: he is buying a fund’s promises to buy gold and store it somewhere. He would prefer to hold a promise to buy gold rather than a promise to buy some other asset.
How much money are we talking about? Over $200 million.
What percentage of your net worth is in gold bullion coins? Or gold bullion stored in a bonded storage firm, such as Goldmoney or Bullion Vault?
This run began in 2001. Soros thinks it will continue. He is not alone, as the article reveals.