This morning's 13-F filings betray Soros' growing love affair with miners. Should you be looking into them too?
This morning, the market crackled with news that billionaire investor George Soros had bumped up his holdings of the SPDR Gold Trust (NYSE Arca: GLD) 0.5 percent in the 4th quarter of 2010.
Color me unimpressed.
Don't get me wrong: When you hold—as Soros does—4,721,808 shares of GLD, any slight percentage change in your holdings translates into potentially huge moves for the vehicle. And since GLD, with more than $52 billion in assets under management, dominates the gold ETP scene, what happens in GLD tends to greatly influence the rest of the gold market.
But this is a nonstory. Amid European economic uncertainty and a tightening Chinese economy, Soros decides to hold onto his gold—well, it doesn't take an investing genius to make that call.
What I find far more interesting is his growing love affair with North American miners.
As Bloomberg reported earlier today, 13-F filings show that Soros hurled himself head-first into Canadian metals producers, increasing his position in Kinross Gold Corp (NYSE: KGC) and snatching up new shares of Pan American Silver Corp (Nasdaq: PAAS). (The love wasn't indiscriminate, however; Soros cut his holdings in range-trading Barrick Gold [NYSE: ABX], the world's biggest gold miner.)
The biggest surprise, however, is Soros' newfound optimism in Vancouver-based Platinum Group Metals Ltd (NYSE Amex: PLG); Soros increased his holdings from 1.5 million shares as of Sept. 30 to a whopping 12.7 million shares as of Dec. 31, worth $34 million.
Given that the fundamentals for gold—and precious metals in general—have never been stronger, miners make a heck of a lot of sense. We're certainly seeing record highs in gold, palladium and platinum prices (silver excepted only because of the Hunt Brothers scandal in 1980). Miner equities offer leverage on those rising prices, since a rising commodity price generally translates into higher company profits and thus a higher share price.
This is clearest when you compare gold's relatively mild recent performance to that of gold miners (here since Aug. 1, 2010):
When gold prices rose, both majors and minor gold producers—proxied by the Market Vectors Gold Miners ETF (NYSE Arca: GDX) and the Market Vectors Junior Gold Miners ETF (NYSE Arca: GDXJ), respectively—outperformed bullion. And when gold prices began to fall, so too did miners outperform—just to the downside. Year-to-date, GLD has lost 4.16 percent, while GDX has dropped 8.15 percent and GDXJ has lost 6.44 percent.
But is Platinum Group Ltd. specifically worth the optimism?
Sand Washer:http://www.crusher-machine.com/19.html
ore vibrating feeder:http://www.hxjqchina.com/product-list_14.html
- Author Articles
- More From This AuthorHongxing Machinery always adheres to the management policy 'people-oriented, regulation-oriented', since its foundation. We are absorbed in every detail to insure the good quality. The company implements the...Mining equipment has really come a long way in the last few years. You need to make sure that you choose the highest quality of mining tools so that you can keep your costs down and improve productivity....According to the industry policy that our country will give significant support to the development of basic industry like energy, transportation and raw material, as the backbone of these basic industries,...Private machinery enterprise had won the market,Shaking concentrator machine, there is a ready cash to eat. But in the fierce competition in the market always maintain leading position, they must keep the...Sudan, short for The Republic of the Sudan. Sudan is located in the south-east of Africa. It's the biggest country in Africa. The industry in Sudan is backward. And the mining too. The main economy is...
- Related Articles
- Related ArticlesJogging and running, whether for exercise or competition, constitute one of the most efficient ways to get in shape, trim off extra weight, and build endurance. There is no question that there are multiple...Over the last several years, more and more men have been jumping on the bandwagon when it comes to trimming the jungle below the belt. This phenomenon may have been inspired in part by the adult film industry,...Direct income businesses offer you tiny threat and huge advantages for women of all ages enthusiastic about beginning a home-centered enterprise. Regardless of whether a woman is looking to supplement her...The mobile suppliers are also just as possible to buy up OTT emails organizations if only for protecting reasons, Bernstrm claimed. Text messaging and VoIP functions have began consuming into...For many men – and women – depression can be severely debilitating, affecting all aspects of life. Even reproductive health can fall victim to symptoms of depression, unless the sufferer seeks help...
- Latest Articles
- Latest ArticlesPelvic warts are by far the most common type of partner-transmitted disease, affecting men and women alike. This widespread disease is caused by certain strains of the human papillomavirus, or HPV – an...In applications where sealings of chemically aggressive fluids at elevated temperatures are required, the use of fluorocarbon elastomers FKM is uniquely suited. The high performance physical and chemical...The selection of the correct grade of material as well as the right design for o-rings and gaskets is of vital importance to the sealing intergrity of the final product. Rubber sealing technology primarily...Jogging and running, whether for exercise or competition, constitute one of the most efficient ways to get in shape, trim off extra weight, and build endurance. There is no question that there are multiple...Over the last several years, more and more men have been jumping on the bandwagon when it comes to trimming the jungle below the belt. This phenomenon may have been inspired in part by the adult film industry,...
