Gold is rapidly losing its investment attractiveness

Expectations of the restoration of the global economy lead to the departure of large investment funds from gold. The growth of the economy of China and the USA, which began in the first quarter of this year, gave the ground for talk that the twelve -year period of constant price growth was coming to an end. The leading economists of the world who took part in a survey conducted by Bloomberg, announced signs of growth in the largest economies in the world.

A billionaire George Soros reduced half investments in gold, his Soros Fund Management LLC sold 55% of the shares of the largest investment fund SPDR Gold Trust. The Louis Moore Bacon Foundation went even further and sold all SPDR shares, simultaneously getting rid of part of the assets in the SPROTT PHYSICAL Gold Trust.

“Decisions on the sale of gold reserves by Soros and Bacon will make the participants in foreign exchange markets be nervous,” says the senior strategist Australia & New Zealand Banking Group Ltd. Nick Trevetan. “However, most investors have not yet changed their attitude to gold, and the market remains stable.”

According to the published report of the World Gold Council) investments in banking metals began to fall in the fourth quarter of 2012 (-8.3%, 424.7 tons).

Adrian Day Asset Management President Mr. Adrian Day, said that today Ivestors prefer to invest in “economically interesting raw material assets, in production of outdoor advertising and fast-growing promotions", but if problems in Europe and the USA again They will arise, then they will again turn to gold.

“The economy looks better, people switch to more favorable assets, such as promotions,” said the chief executive director of Foxhall Capital Management Inc. Paul Dietrich. “Many businessmen turned away from gold.”