Michael Burry, the film’s “Big Short” deity, makes rare comments on gold prices, thinks it’s time to buygoldthe timing of thecryptocurrencyThe bankruptcy of the exchange FTX has the risk of spreading in the currency circle.
Berry rarely talks regarding gold prices, making this speech particularly notable. Kitco reported that Berry tweeted on Tuesday (15th): “I have long believed that when the scandal in the currency circle explodes and spreads, it is a time to buy.goldmoment. ’ However, as usual, he quickly deleted the tweet.
Berry is now the manager of Scion Asset Management Company. He successfully predicted the subprime mortgage crisis and made a fortune. Last year, he also bought the stock of GameStop before the retail investors short-squeezed it to make money.
It is almost certain from the content of the tweet that Berry is talking regarding the FTX bankruptcy and its chain effects.FTX and several companies, founded by the 29-year-old currency tycoon SBF, suffered a liquidity crunch and declared bankruptcy last week, resulting incryptocurrencyLoan provider Genesis has suspended withdrawals, and BlockFi is rumored to be preparing to file for bankruptcy.
supportcryptocurrencypeople keep puttingbitcoinand other tokens are regarded as “digitalgold”, claimscryptocurrencyComparegoldIt is more suitable as a safe-haven asset and a hedging tool.butcryptocurrencyThe price has plummeted this year, and the overall market value has plummeted from US$2.2 trillion to US$830 billion. On the other hand, the price of gold has only fallen by 3% this year, which is even far better than the 17% decline this year.S&P 500 Index。
goldSince the beginning of this month, it has risen by nearly 8%, shaking off the haze of falling for seven consecutive months, making some investors pay attention to its trend once more. Analysts pointed out that factors contributing to gold prices include cooling U.S. inflation, depreciation of the U.S. dollar, risks in the currency circle, and the possibility that the Federal Reserve may slow down the pace of raising interest rates.
gold futuresIt closed down to $1,763 an ounce on Thursday, and rose slightly by 0.16% to $1,765.80 in Asian trading on Friday.
Stress remains bearish on stocks
Berry also revealed that he now has a large short position in stocks, saying in another tweet that has also been deleted: “No one knows how short I am at this moment.”
The well-known investor’s remarks may be intended to warn investors not to over-interpret his shareholding changes in the third quarter. Scion Asset Management slashed its holdings in the second quarter, leaving only one prison stock, but Monday’s 13F filing shows that in the third quarter, the number of holdings increased to six, and the total value of the holdings increased from $3 million to regarding $41 million.
BusinessInsider interpreted that although Berry entered the market to buy stocks, he may use other transactions that did not appear in the latest data as hedging.
Berry warned in May that the S&P 500 may bottom out around 1900 (52% lower than Thursday’s closing price), and investors should not be fooled by the short-term rebound. Despite the recent rally in U.S. stocks, Berry reiterated his bearish stance.
