George Soros opts for gold haven saying Brexit would spell end of EU
09-Jun (Telegraph) — George Soros has piled more of his £30bn fund into gold amid growing concerns about the global economy.
The billionaire investor also warned that if Britain voted to leave the EU on June 23 it would mark the end of the European project.
Mr Soros, dubbed “the man who broke the Bank of England” for his multi-billion bet against sterling in the 1990s, is reportedly selling more shares and betting “big” on bearish investments, including the precious metal.
…”This move is all about the global environment. Advanced economy sovereign bond yields are falling everywhere,” said John Wraith, head of UK rates strategy at UBS.
Mr Soros said he had stepped up purchases of gold because he believed that continued weakness in China would keep global inflation rates around the world dangerously low.
…”If Britain leaves, it could unleash a general exodus, and the disintegration of the European Union will become practically unavoidable,” he said.
PG View: Note that Soros is buying gold because he thinks inflation rates are likely to remain dangerously low. Once again proving that the yellow metal is a hedge for all the various ‘-ations.’ See Black Swans, Yellow Gold: How gold performs during periods of deflation, chronic disinflation, runaway stagflation and hyperinflation