Stick to your guns Rabbitoh, Mutiny will rise and shine on down.
Taken from Mineweb.com:
...."It appears that some of the U.S.'s biggest investment names have been increasing holdings in gold mining stocks and the biggest gold mining stock ETF, while they may have been liquidating bullion related investments. This would appear to be in recognition that, as we have pointed out in these pages a number of times, that the gold mining sector has been largely passed by in favour of bullion of late, yet was going to see huge Q3 profit increases due to receiving average gold prices for their unhedged output at over $1700 an ounce. This opinion has subsequently been borne out by actual Q3 profit figures which have risen by triple digit percentage figures virtually across the board.
Although John Paulson, the billionaire hedge fund manager, may have cut his SPDR Gold Trust ETF holdings sharply last quarter, he is now reported also to have heavily increased holdings in some key gold stocks over the same period. Reports on the internet say he sharply increased his holdings in Agnico-Eagle, Barrick Gold, IAMGold, International Tower Hill, NovaGold and Randgold Resources.
Likewise in Q3 another mega investor, George Soros, who famously heavily reduced his gold holdings earlier in the year after saying gold is in a bubble has also been reported to have bought stock in Franco Nevada and International Tower Hill in the period.
The third big name investor who has been seen as picking up a major gold stock position, at least of a type, in Q3 is David Einhorn, Founder and President of Greenlight Capital, who more than doubled his holding in the Market Vectors Gold Miners ETF to over 7 million shares. This ETF holds gold stocks in the main rather than gold bullion, its top holdings being in Barrick, Newmont, AngloGold Ashanti, Gold Fields and Silver Wheaton.
It's not necessarily that mega investors of the likes of Paulson, Soros and Einhorn are always right in their choices, but they haven't got where they are today without picking the best investment opportunities as they see them occurring. With the gold price looking to have settled in the current range of $1650-$1800, and many predicting it will go higher before the year end, the producing gold miners are going to continue to make huge quarterly profits and are thus set fair for record results this year. With a trend towards increasing their dividends at a time when fixed investment is paying virtually no interest, maybe Paulson, Soros and Einhorn are all making some smart, and potentially profitable, moves..."
