Wednesday, March 30, 2011

3 Mistakes People Make About George Soros and Gold, by Mike Clemson

Knowing what direction to go and the way to get things done is always really important. Knowing the details of the best way to do it is also important. Nevertheless, that's only part of the picture; it's necessary, although not sufficient. You also have to really know what to avoid, what mistakes to avoid. The best way to accomplish that is to discover what mistakes others are making so that you can avoid making those very same mistakes.

For investing in gold like George Soros, that also applies. There are a number of people who succeed there. You'll want to be one of these as opposed to someone who makes mistakes and fails. Here then will be the three most important errors that individuals make after they start off with investing in gold like George Soros.

Number 1. Do not misinterpret what George Soros says about gold. The reason that this is very important is that most investors misconstrue his words. To avert this problem you want to break down his actual statements. For example, he said "Gold is the only actual bull market currently. It just made a new high yesterday. In the present circumstances that may continue, I called gold the ultimate bubble, which means it may go higher. But it's certainly not safe and it's not going to last forever."

Some interpreted that to mean that gold was a bubble about to burst but that is not what he said.

Second, analyze Soros' gold stock holdings and not his words. Soros currently holds $897,558,000 or 18% of his total $5,085,000,000 under management in gold. The gold ETF (GLD) is 71% of his gold exposure ($633 million) and his largest gold stock position is Novagold at $90 million.. This is usually a very important factor in that people vote with their wallets. If Soros was sounding the alarm bells about gold, why would his funds allocate 18% of their holdings to gold? What you ought to do then is only focus on his filings with the SEC. Forget about what the media claims.

And finally, understand that big investors like George Soros might try to talk down the market in order to buy more gold. If you wanted to buy gold at lower prices and you were the most famous investor on the planet you would not tell everyone that you expect the price to triple, would you? This trouble is experienced in instances where people don't understand that investing is a game of poker and sometimes investors are bluffing about their positions. The best way to stay away from this is to focus on the SEC filings instead of the media reports.

Study these ideas about investor mistakes about George Soros and gold stocks and carefully avoid them. As an alternative, you may do as instructed above for doing it properly. Much better results will then be your reward!

Discover methods to invest in gold like George Soros and other top hedge fund managers by going to my George Soros gold bubble website at

By Mike Clemson Platinum Quality Author

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