The precious metal that made California a state has been on the hold list of commodities for some time. While the precious stuff is getting less from jewelers and from industrial users, investment advisors are still bullish on the buying and holding of gold mining stocks.
A strong gold buyer, John Paulson, a billionaire hedge fund manager, is not changing his position on the shiny metal. In spite of the recent dip in gold prices, John Paulson is still bullish for gold. The billionaire manager has a strong buy and hold for one of his own holdings in gold, SPDR Gold Trust trading as GLD. The Gold Trust owns real gold. Other gold investments in John Paulson’s hedge fund are Randgold Resources trading as GOLD, AngloGold Ashanti trading as AU and NovaGold Resources trading as NG.
Those are not the only gold stocks that make John Paulson’s hedge fund a shiny bushel of bullion. John Paulson’s hedge fund owns 19.5 million shares of Kinross Gold trading as KGC. Due to the downswing in gold in January, John Paulson sold off some of his previous 33.1 million shares of KGC.
John Paulson’s only concession to the latest downswing in the price of gold stocks was to sell off some of his 33.1 million shares of Kinross Gold, trading symbol KCG. He now owns only 19.5 million shares. John Paulson buys and holds gold because he believes that inflation will continue to get worse. With that premise, he has also started to buy energy stocks from companies like Transocean, trading symbol RIG and Anadarko Petroleum, trading symbol APC. He owns over 7 million shares of stocks in each company.
John Paulson seems to be combining all of the current thinking in the buying and holding of gold mining and industrial stocks. However, his interest in energy stocks seems to be a hedge against further dips in gold. Both gold and energy stocks are seen as a safe way of making money on inflation.
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