A month ago it became known that George Soros sold $800m worth of gold, but it is just this week that Russia claims IMF Chief Strauss-Kahn was framed for discovering all US gold from Fort Knox is gone! Two different stories may have great impact on the gold price. Gold futures declined this week from $1,554, although the all-time high for the precious metal stands at $1,564 reported during May. Gold investors worldwide have been skeptical about whether the gold’s bull market is coming to an end – after all Soros described it as “the ultimate bubble”. If rumors about Fort Knox are not far from the truth, then not only will the gold price collapse but also the world economy as we know it. Yet, those rumors circulate for years and today’s political thriller just adds up to the conspiracy theory.
Spot Gold chart since 1975
Congressman and 2012 Presidential candidate Ron Paul made a call after Strauss-Kahn arrest for the US to sell its gold reserves, taking advantage of the gold price’s peak. The same Congressman had put forward a bill in 2010 to force an audit of US gold reserves but it was defeated. According to European Union Times bizarre reports suggest there is no gold to sell, while Chinese officials were shocked to find out that the 5,700 gold bars they received in 2009, originated in the US, were actually fake!
On the other hand knowing that billionaire trader, George Soros, sold off almost all his gold stake during the first quarter of 2011 doesn’t inspire confidence to retail investors. But don’t sell all of your gold futures just yet. Hedge fund manager John Paulson insists that gold is in a very long term rally that won’t be affected by Soros’ trade. Two multi-million investors take an opposite trade on gold, whom would you trust?