With economic trouble in the forecast, big investors are looking to gold

Gold futures are on the rise as the signs of a coming global financial meltdown become too obvious for even the most mainstream investors to ignore.

Gold futures are on the rise as the signs of a coming global financial meltdown become too obvious for even the most mainstream investors to ignore.

The Wall Street Journal reported Wednesday that billionaire investor George Soros has jumped back in the trading game with a series of “big , bearish investments”  in gold and gold mining stocks.

Via WSJ:

Soros Fund Management LLC, which manages $30 billion for Mr. Soros and his family, sold stocks and bought gold and shares of gold miners, anticipating weakness in various markets. Investors often view gold as a haven during times of turmoil.

The moves are a significant shift for Mr. Soros, who earned fame with a bet against the British pound in 1992, a trade that led to $1 billon of profits. In recent years, the 85-year-old billionaire has focused on public policy and philanthropy. He is also a large contributor to the super PAC backing presumptive Democratic nominee Hillary Clinton and has donated to other groups supporting Democrats.

Mr. Soros has always closely monitored his firm’s investments. In the past, some senior executives bristled at how he sometimes inserted himself into the firm’s operations, usually after the fund suffered losses, according to people familiar with the matter. But in recent years, he hasn’t done much investing of his own. That changed earlier this year when Mr. Soros began spending more time in the office directing trades. He has also been in more frequent contact with the executives, the people said.

According to financial watchers, Soros has “a lot of Barrick Gold and Silver Wheaton and adopted derivative positions that will benefit from a decline in the S&P 500.”

This isn’t really that surprising for anyone who’s ever listened to anything about gold being the best hedge against harsh economic realities. Those harsh realities are, after all, at the doorstep thanks to years of central bank easy money policies and brewing geopolitical insanity.

“I think that the you’ve got ‘Brexit’ coming at you. You have a Spanish election coming at you in a week and a half and that is terribly confusing. It looks like the left is going to win. You have rising nationalism in France. You have the strike in France. You have one thing after another,” Dennis Gartman, publisher of The Gartman letter, told CNBC.

Gold futures have already hit a three-week high at $1,272.70 an ounce. How high the precious metal’s price will go over the next several months is anyone’s guess— but based on the gold rallies we’ve seen ahead of similar periods of financial uncertainty in the past, the smart money is on up, up and away.

We’ve been telling you this for a while—and we hope you’ve been listening. If not, take the opportunity to better understand and learn how to situate yourself for the coming gold spike and accompanying economic turmoil with this handy guide.

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