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Gurus on Gold and All That Glitters

March 30, 2013 | About:
Sally Jones

Sally Jones

49 followers
What are some of the top investor Gurus doing in the long gold slump, while analysts are saying the future belongs to silver? With legendary hedge fund Guru John Paulson’s Gold Fund down 26% this year, Paulson has maintained a long-term “quantitative easing” outlook; meanwhile, Guru Seth Klarman claims a stake in Alaska’s Donlin Creek area companies, where some of the world’s largest gold deposits rest undeveloped. Novagold Resources (NG) and its spin-off NovaCopper (NCQ) are on the buy list of both John Paulson and Seth Klarman. In fact, Guru John Paulson’s largest position is 35,970518 shares of Novagold Resources (NG). He also holds 5,921,607 shares of its spin-off NovaCopper (NCQ). Like Klarman, Paulson has a large stake in Novagold Resources, the 50% owner company of the Alaska’s Donlin Creek area. Still, other Gurus George Soros and Steve Mandel go in the opposite direction, unloading precious metal company shares.

In the big picture of gold and silver markets, Kinross Gold Corporation (KGC) is one stock pick that has Gurus making major buys or selling out. The company has a market cap of $9.05 billion with a P/E of 9.61 and a P/S of 2.2. Kinross Gold Corporation mines and processes gold, and silver ore as a by-product, and also explores and acquires gold-bearing properties in the United States, Canada, Mexico, Ecuador, Brazil, Chile, Mauritania, Ghana and Russia. The company says its strategy is to increase shareholder value through increases in precious metal reserves, net asset value, production and long-term cash flow and earnings per share.

The KGC share price is currently $7.93, down 20% year to date.

As of quarter ending Dec 31, 2012, a number of Gurus increased their Kinross Gold positions.

Guru John Burbank increased his Kinross Gold position by 50.53%, now holding 14,121,122 KGC shares. John Burbank’s holding history:



Third Avenue Management also increased their KGC position by 11.84% for the same quarter ending, with current shares at 5,523,264. Third Avenue’s holding history:



SAC Capital’s Steven Cohen also increased his KGC position by 176.95%, same quarter ending:



Gurus George Soros and Chuck Royce sold out his KGC shares the same quarter ending.

As wise traders know: All that glitters is not gold, but some of it is. We can’t get inside the minds of these top Gurus whose gold-buying and selling behaviors are so different from each other. But we can always turn to traditional wisdom that says the best hedge against inflation is gold. And according to some, the future belongs to silver.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.4/5 (5 votes)

Comments

Cornelius Chan
Cornelius Chan - 1 year ago
The world's largest gold deposits are in Alaska? Funny, I thought they were in South Africa.

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