At the end of every quarter, 45 days later, large institutional investors have to reveal their holdings to the Securities which are made public. From the reports all types of lists are made public including what is happening with the well known investors, the list is examined to see what the “smart” money is doing and it was revealed that George Soros – a billionaire investor has taken a shine to gold. Other folks include Stanley Druckenmiller, David Einhorn accumulated gold in the expectations the price might rise. The information was in Ian McGugan of the Globe and Mail column Investing gurus take a shine to gold.

Gold pays no yield and is very attractive to investments which offer next to no payout. Typically gold prices will fall if rates on bonds and bank accounts were to increase. This leads to the US economy and will the US Federal Reserve raise rates?

If the so called “smart” money is looking at gold, it may be worth looking at, but since the reports are filed 45 days after the quarter, the positions may have increased or decreased in the meantime.

Linking to dividend paying stocks, there are many methods to invest in gold including gold companies on the exchange some pay dividends as their debts have been restructured. The issue today is the reports the large institutions file are to be looked at, examined but try not to make a final decision on them because they are at least 45 days old. However they do offer ideas of what is going on with institutional investors.

There are more questions than answers, till the next time – to raising questions.