Many high-profile investors believe that gold will perform well against the dollar in the current financial environment. George Soros and Jim Rogers are just some of the well-known investors who are high on gold’s prospects. For more on this, see the following article from The Street.
David Einhorn, president of hedge fund Greenlight Capital, is the latest high-profile investor to very publicly talk up gold.
At the recent value investor conference in New York, Einhorn said gold will do well as the dollar remains under siege and prices will head higher unless Washington implements monetary restraint, which he deems unlikely. In fact, Einhorn told The Wall Street Journal that the massive amount of physical gold Greenlight Capital owns is being stored near Times Square.
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The idea that gold is better than cash and other currencies isn’t a new one.
Einhorn joins famed investors, Jim Rogers, who thinks gold should be at $2,000 if you adjust for inflation. Rogers told me in a recent interview that if world economies get better, “commodities are going to lead the way.” But if world economies get worse, commodities will still be the place to invest because governments will have to keep printing money. Rogers isn’t buying gold at record highs but he isn’t selling either.
John Paulson’s profitable hedge fund Paulson & Co. is the largest owner of SPDR Gold Shares ETF(GLD Quote), a popular way to own gold. Paulson & Co. owns 31.5 million shares or $3.24 billion. Paulson also owns mining stocks AngloGold Ashanti(AU Quote) and Gold Fields.(GFI Quote).
George Soros, author, investor and chairman of Soros Fund Management, has been long gold since 2008. Soros believes that the global economy won’t recover until 2010 and that the dollar could be replaced as the world’s currency. As the dollar loses value, gold prices will keep rising as investors look to the precious metal as an alternative asset.
This article has been republished from The Street. You can also view this article at The Street, an investment news and analysis site.