What might that mean?
Well, it could mean a few things. It could mean that George Soros and his fund management team listen closely when a 100 year old man speaks. It might also mean the team felt that gold mining equities were extremely undervalued on a short term basis…and it might also mean the team sees money to be made over the next 6-12 months, via a sharp move higher in the GDX.
One thing we do not know, is the expiration date and strike price of the options. However, given the size of the fund, and size of the option position, it’s very unlikely that the options are short-term(less than 6 months), and due to necessary volume to fill such a position, they are likely “close to the money”---to use a piece of option jargon.
It’s encouraging to see one of the world’s most successful billionaire investors moving cash into the gold mining equity space, especially during a time in which many a smart market commentator has pounded the table to anyone who will listen, of the value to be had in the sector. There is no doubt great numbers of retail investors who have abandoned the mining equity space this year.
"""However, we should note many of the retail and institutional investors who abandoned their ships (positions) over the last six months, may have inadvertently been selling their holdings directly to the Soros Fund Management LLC team."""
In betting who will ultimately be right or wrong from a financial perspective, I’ll be placing my bets on the Soros Fund.
Best of luck in the months ahead,
By Tekoa Da Silva
Enjoy the stock market !