Famed Investor Druckenmiller Bets Big on Beaten-Down SPDR Gold Trust ETF (GLD) Stock

NEW YORK (TheStreet) -- Famed investor Stanley Druckenmiller has a large position in the beaten-down ETF.

Just a few weeks ago we were reminded that nothing gold can stay when the precious metal fell to fresh five-year lows.

Shares of the SPDR Gold Trust  (GLD), the market's largest physical gold ETF, declined to a 52-week low of $103.43 on July 24, the lowest it's been since the fourth quarter of 2009. Miners have also taken a hit. The Market Vectors Gold Miners ETF (GDX), whose top holdings include Goldcorp  (GG), Newmont Mining  (NEM) and Barrick Gold  (ABX), is down more than 20% year to date.

But a big name on Wall Street is betting the other way.

Reputed investor Druckenmiller made a huge bet on GLD, according to a 13-F filing of his family holdings.

The filing shows more than a 2.8 million share position in GLD valued at about $323,626,000, making the gold position his largest single holding, followed by Facebook  (FB) and Wells Fargo (WFC).

Shares of SPDR Gold Trust are currently up 0.29% to $107.16.

"Before the (currency) move from the Chinese government, you couldn't find anyone who could make a bullish case (for gold)," Dan Denbow, a portfolio manager at the $700 million USAA Precious Metals & Minerals Fund told Bloomberg.

But there could potentially be other bright spots when considering a gold play.

Here's what TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS charitable trust, says: "The only gold stock I am recommending is Randgold  (GOLD) because it has the lowest finding costs, the best African prospects, where the most gold is, and the best management in CEO Mark Bristow."

GLD ChartGLD data by YCharts

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