Gold and Silver ETFs bled massive as news filtered out that Soros had quit long positions in both metals. Gold ETFs AGOL, GLD and Silver ETFs PSLV, SLV and SIVR fell near 4 per cent across the board, as investors realised it was too costly an adventure to keep admiring a metal that does precious little either in bank vaults or when strung around as jewellery.
Billionaire investor George Soros's hedge fund dumped most of its gold holdings during the first quarter, according to a securities filing on Monday.
New York-based Soros Fund Management owned just 49,400 shares of the SPDR Gold Trust [GLD 145.37 
-0.26 (-0.18%) 
] at the end of March, down from 4.7 million shares held at the end of December. A 5 million share stake in the iShares Gold Trust [IAU 14.57 -0.02 (-0.14%) ] at the end of December disappeared completely from the latest filing.
The gold ETF positions were valued at over $774 million at the end of the fourth quarter, by far the firm's largest position at that time. At the end of the first quarter, the remaining gold position was worth less than $7 million.
The sales make sense given that Soros said he had bought gold because he was worried about deflation, said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Pittsburgh. "It's pretty hard to make the case for deflation right now so if that was a reason you were buying gold, you should take this signal from Soros," he said.
Inflation is now the greater concern, Luschini said. So most investors should still keep about 3 percent to 5 percent of their assets in gold to protect against inflation and possible further problems in the world financial system.
Soros also slashed stakes in gold and silver mining companies during the first quarter. The firm owned 1.4 million shares of Kinross Gold [KGC 14.27 
0.03 (+0.21%) ] at the end of the quarter, down from 4 million shares three months earlier. Holdings in Novagold Resources [NG 10.27 -0.07 (-0.68%) ] dropped to 3.5 million shares from 12.9 million.
And the filing included no listing for Pan American Silver after Soros reported owning 19,900 shares three months earlier. The disappearance typically means the stake was sold off completely, although firms occasionally can omit listing positions that are being actively traded.
A spokesman for the fund did not immediately respond to a call and email seeking comment about the filing. The Wall Street Journal reported on May 4 that Soros had sold gold and silver investments built up over the previous year.
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