Gold, Michael Burry, and The Big Short: Analyzing Early Sale Losses
Friday, 20 September 2024, 13:08
Gold Prices Surge Amid Economic Uncertainty
Gold prices have recently increased, driven by inflation fears and currency devaluation.
Michael Burry's Gold Bet
- In early 2024, Michael Burry's Scion Asset Management invested over $10 million in Sprott Physical Gold Trust (PHYS).
- His investment represented 7% of Scion’s total holdings, just before a notable increase in gold prices.
Early Exit: A Costly Decision
Burry significantly exited his position in August 2024, after a 23% price rise.
- Had he maintained his investment, he would currently see profits exceeding $2 million.
- As of September 20, 2024, gold reached $2,608.34 per ounce, a $150.79 increase since his sale.
Wider Hedge Fund Interest in Gold
- Ray Dalio champions gold as a solid investment amid fiat currency concerns.
- Hedge funds' net-long positions in gold have risen significantly, indicating growing optimism.
Investors like David Einhorn and strategies from experts like Mike McGlone indicate that gold could continue to rise as other commodities falter.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.