Famed investor George Soros sold 72,000 shares of GLD while Leon Cooperman bought 90,000. So, who's right?
It’s a clash of the titans and they’re fighting over gold: George Soros sold 72,000 shares of an ETF that tracks gold, the SPDR Gold Shares (GLD). Meanwhile, Leon Cooperman bought 90,000 shares of the same ETF.
So, who’s right?
“I hate gold,” says Steve Cortes, founder of Veracruz TJM and Talking Numbers contributor.
“Fundamentally, the backdrop for gold couldn’t be better.” As currencies such as the Japanese yen are being devalued, reasons Cortes, gold prices should go up. “This should be a sweet spot for gold. Instead, it was absolutely killed in April.”
Second, Cortes believes that when retailers such as Wal-Mart are unable to exert pricing power, it bodes poorly for gold. Inflation is contained, a negative sign for gold.
Does global demand help gold’s case? Not so, says Cortes.
“The gold bulls are resting their case on Asian demand. The problem is, Asian markets are trading very poorly."