Famous hedge fund manager, George Soros, hints that gold is overpriced
Legendary hedge fund manager, George Soros, has called the recent surge in gold prices “the ultimate asset bubble”.
Jewellery makers feeling the pinch of gold prices that peaked at just over $1,225 per ounce last month will be hoping Mr Soros is right. The Hungarian-born speculator has become one of the world’s richest men by betting against the herds that create bubbles in asset prices,
Speaking at the Davos World Economic forum, Mr Soros argued that with interest rates at record lows around the world, and governments injecting money into financial markets, there is a risk of new bubbles in asset prices being created this year.
"When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold," he said.