Is ‘Big Short’ Michael Burry right saying this is gold’s time?

Those who know me well know that I am considered a perpetual gold bug.  It is good to know that others who are not of the same thought, are coming around to see that the time for gold is coming.

Kitco News has a very interesting article about Michael Burry weighting in on gold.  He is well know from spotting the mortgage debacle early and making a fortune betting on it and from the movie that made him even more famous “The Big Short.”  I though that my followers should read it and, even if not in agreement, they can perhaps check what he has to say, specially after the FTX disaster. 

Here is part of the article that you can read in full at Kitco.com

(Kitco News) In a rare comment, “The Big Short” investor Michael Burry has weighed in on gold, stating that this is the time for the precious metal to rally because of the crypto contagion risk post-FTX collapse.

Burry, who runs the hedge fund Scion Asset Management, is known for spotting the mortgage crisis early and making a fortune against the U.S. housing bubble. In 2019, the investor also made millions by purchasing shares of GameStop, which was well before the Reddit frenzy took over the stock.

Burry rarely comments on gold, making this call much more unique for traders. According to him, the crypto chaos caused by the FTX saga sets the stage nicely for gold.

“Long thought that the time for gold would be when crypto scandals merge into contagion,” Burry said in a tweet that has since been deleted. Burry is known to delete his tweets shortly after posting them.

“His Tuesday comment coincided with gold getting a lot of attention from investors after its impressive November gains — up nearly 8%. The move higher comes after seven months of consecutive losses. Analysts cite cooler inflation data, lower U.S. dollar, crypto risk, and a potential slowdown by the Federal Reserve as some of the main reasons behind the price gains.

“At the time of writing, spot gold was trading at $1,776 an ounce.

“The famous investor also revealed that he has a sizeable short position at the moment. “You have no idea how short I am,” Burry said in another tweet Tuesday…”

You can read the rest of the article at https://www.kitco.com/news/2022-11-16/-Big-Short-Michael-Burry-says-this-is-gold-s-time-cites-crypto-contagion.html

 

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.