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August 22, 2012 / Hal (GT)

What do the big boys know?

Yesterday I highlighted a host of news items on my page: Gold and What Moves it.

But I wanted to make sure everyone sees, these three links because I believe they bear chewing upon and digesting.

The first two items are covering the same thing, billionaires going into gold in a big way.

David Engstrom writes in a post on IBTimes, Lear Capital: When BIG Money Moves Into Gold – What’s Your Next Move??:

…According to a recent Bloomberg report, Soros FundManagement added 884,000 shares of SPDR Gold Trust to its portfolio.  Not to be outdone, fellow billionaire John Paulson of Paulson and Company, assumed the role of alpha male and increased his fund holdings to 21.8 million shares.

All the while, the pack, the average investor, is being hit here and there with snide little comments suggesting gold has seen better days.  The economy is recovering, jobs are plentiful, even housing is bouncing higher and higher off its bottom.  And Europe?  Fagget it!  It’s all better now.  If we don’t talk about it, the problem goes away.  In fear of losing hard-earned savings, the pack has fled gold and moved back in the direction of stocks, bonds and housing.

Then there’s those darn billionaires who now run in the opposite direction of the pack.  They tell you gold is a bubble so you sell and just when you think you moved ahead of the pack, you learn the really smart money, the big dogs, are buying all the gold you sold.  Is the you-know-what about to hit the fan again? …

Michael Snyder in a post on writes:

Are you willing to bet against three of the wealthiest men in the entire world?  Jacob Rothschild recently bet approximately 200 million dollars that the euro will go down.

Billionaire hedge fund manager John Paulson made somewhere around 20 billion dollars betting against the U.S. housing market during the last financial crisis, and now he has made huge bets that the euro will go down and that the price of gold will go up.

And as I wrote about in my last article, George Soros put approximately 130 million more dollars into gold last quarter.  So will the euro plummet like a rock?  Will the price of gold absolutely soar?  Well, if a massive financial disaster does occur both of those two things are likely to happen.  The European economy is becoming more unstable with each passing day, and investors all over the globe are looking for safe places to put their money.  The mainstream media keeps telling us that everything is going to be okay, but the global elite are sending us a much, much different message by their actions.  Certainly Rothschild, Paulson and Soros know about things happening in the financial world that the rest of us don’t.  The fact that they are all behaving in a consistent manner right now should be alarming for all of us. …

So what do the big boys know that you and I don’t? Do you think they have some insider info or have an advanced warning system?

The last piece is this reported by Moran Zhang, Caterpillar CEO Turns Less Bullish, Warns Of Economic Uncertainty:

Chief Exectutive Officer Doug Oberhelman has long been an optimist, but these days the head of the world’s largest maker of construction and mining equipment has been scaling back on his optimism.

The global economic outlook is more uncertain now than during late 2008, although the situation isn’t as severe, Oberhelman told the Financial Times.

“There’s never been a more unpredictable set of tea leaves than right now. Even in 2008 and 2009, U.S. housing was already dying and had been for two years. We saw that,” Oberhelman is quoted as saying in the Financial Times.

“I don’t think the situation is as grave as it was in 2008, but the uncertainty, the storm clouds are around things that none of us know about, like what will happen with the political situation in Europe,” he said.

Four years after the most serious economic crisis in Europe since World War II, the continent is once again sliding deeply into recession. The latest figures from the European UnionEurostat agency reveal that between April and June of this year, the combined economies of the 17 states constituting the euro zone declined by 0.2 percent compared to the first three months of 2012.

Definitely something to think about.

Right now, gold is climbing out of the summer doldrums and many expect it to make a new high. Track it for free on your computer desktop with the Adobe Air widget Exact Price.


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