Both silver and gold faced some noise Tuesday as investors digest the latest 13F filings for the first quarter, which don't look good for gold. George Soros dumped his gold holdings in the first quarter but he did put some money on two large cap miners, Barrick Gold ( ABX) and Goldcorp ( GG). Soros' closely watched fund added a handful of shares to the two names, raising its position in Barrick to 8,500 and initiating a new position in Goldcorp of 7,600 shares. Soros reduced his holdings in the SPDR Gold Trust ( GLD) to 49,400 and reduced his big share of NovaGold ( NG) to 3.5 million shares from 12.91 million. Soros' bet on the small gold miner was a big boost for shares in 2010 which have fallen 35.8% year-to-date. Soros did initiate a new position in Freeport McMoRan Copper & Gold ( FCX) of 301,300 shares and added to his position of Great Basin Gold ( GBG) bringing his stake to 6 million shares.
Silver, on the other hand, was not subject to the same kind of selling. The iShares Silver Trust ( SLV) saw huge bets by Bank of America and JPMorgan, which increased their shares by a combined 10.56 million to be the number one and three holder, respectively. One of the biggest sellers was Citigroup ( C) with 1.5 million shares. The filings are from January 2011 through March and it will be interesting to see if the heavy selling that silver saw in April and May was in part due to these firms dumping those same silver positions. The ETF has shed 656 tons since April 1st. The biggest fear among some analysts was that the hot money in ETFs that helped gold and silver rally to record highs would also lead to their downfalls. Some experts predicted that gold should be at $800-$1,000 once the speculative money came out. The first quarter proved that a lot of the speculative money did come out and gold prices are still holding around $1,500, which begs the question: is gold really resilient? Or is there more of a selloff to come?
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