Saturday, September 25, 2010

Foreign Currency Wars Fuel Gold's Rally To $1,300/oz

By Gary Dorsch:

With the price of gold zeroing in on yet another major milestone, - $1,300 /oz, some heavy hitters in the marketplace are beginning to wonder if the yellow metal's rally, is getting a bit too frothy, or even worse, whether a speculative bubble is brewing, that might ultimately deflate under its own weight, and lead to a sharp correction. On Sept 15th, famed hedge fund trader George Soros said that gold prices might continue to rise, but warned that that gold is the "ultimate bubble."

"Gold is the only actual bull market currently. It just made a new high yesterday. In the present circumstances that may continue. I call gold the ultimate bubble, which means it might go higher. But it's certainly not safe and it's not going to last forever," he warned. Soros has been bullish on gold in a big way, and as of June 30th, the Soros fund held 5.24-million shares of the SPDR Gold Trust GLD, a stake worth about $650-million today. Soros's fund also held equity holdings in miners of gold and other minerals worth almost $ on

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