Soros in Platinum: Will Gold Dim?

Many hedge funds have tracked the dizzying rise in gold and silver, but that is probably old hat. Too many traders are already there and these commodities are expensive. There may be greater room for gain in platinum and palladium.

George Soros recently increased his holding in Vancouver-based Platinum Group Metals to almost 10%. Platinum Group owns part of Bushveld Igneous Complex of South Africa, which is reportedly sitting on most of the world’s new platinum and palladium.

China’s carmakers are stoking the demand for platinum and palladium. This is a key consideration—much of the money made in commodities is being made in industrial metals rather than precious metals, despite the latter’s big climb.

Soros, like other hedge funds, did buy gold businesses like NovaGold, but more recently he’s argued that a bubble is forming in the metal.  By contrast, one does not hear bubble talk about platinum and palladium.  At least, not yet.

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2 Responses to “Soros in Platinum: Will Gold Dim?”

  1. Individual Commodities Diverge Widely « HedgeFundSmarts Says:

    […] funds have been going for less-known products. George Soros is among the managers that bought the stock of Platinum Group, part owner of Bushveld I…, which reportedly holds most of the world’s new platinum and […]

  2. Soros Down on Gold? « HedgeFundSmarts Says:

    […] past November I wrote about Soros’ increased holdings in Platinum Group Metals. Chinese carmakers stoked the demand for platinum, which as an industrial metal is vulnerable to […]

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