Tuesday, February 20, 2018

George Soros and John Paulsen Buying NovaGold

April 2, 2010 by  
Filed under Smart Money Says

George Soros and John Paulson invested a combined $175 million in NovaGold Resources. According to a Forbes report on March 24, 2010 – –

They were following the lead of Thomas Kaplan, 47, a little-known New York City billionaire investor who thinks gold’s bull run is far from over. An Oxford-trained historian, Kaplan believes that the last 40 years, when gold was not the world’s reserve currency, were an aberration and that gold will revert to the top store of value as it was for 5,000 years. He means it: Kaplan’s family office, Tigris Financial Group, manages close to $2 billion in gold assets.

In a followup article, also in Forbes on March 25, 2010 Avi Tiomkin, chief strategist for Kaplan’s Tigris Financial Group, said “Gold performs even better in deflationary periods.”

This is Tiomkin’s reasoning: The investment thesis behind gold is not grounded in the idea that gold is an inherent hedge against inflation. Rather, says Tiomkin, the power of gold is that it acts as a hedge when people lose faith in their public institutions. “Gold performs great in both inflation and deflation, when people lose confidence in governments and central banks,” says Tiomkin.

On February 8, 2010, Reuters reported:

Soros Fund Management owned 6.2 million shares of SPDR Gold Trust (GLD.P) — an exchange-traded fund that owns gold bullion — at the end of the year worth $663 million. That was up from 2.5 million shares at the end of the third quarter.

Be Sociable, Share!

Comments are closed.