Soros says gold safe haven no more, but sees cbank support-report

April 8 Mon Apr 8, 2013 5:03am EDT

April 8 (Reuters) - Institutional investor George Soros said gold has been destroyed as a safe-haven asset, but expects continued central bank buying to support prices, the South China Morning Post reported.

"Gold was destroyed as a safe haven, proved to be unsafe. Because of the disappointment, most people are reducing their holdings of gold," Soros told the newspaper in an interview published at the weekend.

"But the central banks will continue to buy them, so I don't expect gold to go down. If you have the prospect of a crisis, you will have occasional flurries or jumps. So gold is very volatile on a day-to-day basis, no trend on a longer-term basis."

Soros, who called gold "the ultimate bubble" in 2011, slashed his position in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, by more than half to 600,000 shares in the fourth quarter of 2012 from 1.32 million in the third quarter.

The price of spot gold has fallen nearly 6 percent so far in 2013, after a 12-year rally, as investors searched for better investment returns elsewhere including equities. In contrast to gold, the S&P 500 stock index is up almost 9 percent this year.

On Monday, gold stood at $1,578 an ounce, regaining some ground after hitting a 10-month low of $1,539.74 last week.

Soros said gold has "disappointed the public, because it is meant to be the ultimate safe haven."

"But when the euro was close to collapsing in the last year, actually gold went down, because if people needed to sell something, they could sell gold...So gold went down together with everything else," he was quoted as saying by the newspaper.

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Comments (3)
BobStreb wrote:
When Soros says that “gold has been destroyed as a safe-haven asset,” then the time to buy the hard asset is current. The demand for physical gold and silver remains vibrant as the “paper” gold and silver markets falter under the weight of a crisis laden paper fiat system, and commodity market manipulations, by players such as Soros. Transfer your “paper wealth” to hard asset gold and silver, live long and prosper!

Apr 08, 2013 7:46am EDT  --  Report as abuse
LT-95 wrote:
Bob you are absolutely correct. If Soro’s says to sell u follow him just like u do China, it means it is time to buy. Believe that he will get right back in as soon as gold finds a bottom of which it should be there.

Apr 08, 2013 10:47am EDT  --  Report as abuse
sabatwo wrote:
so how do you buy gold? best bet is gold coins because they need no assay to sell or exchange. to trust no one best to test them with the 25 gold coin balance that is bought on line. test 7 different gold one oz coins. If your wrong , them leave them to your kids…

Apr 08, 2013 11:16am EDT  --  Report as abuse
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