Big dogs like Buffett and Soros are unloading their gold and silver positions. These people have histoy of making the right calls more often. All i have to say is "Be careful about going all in GOLD at these levels. When Buffet was selling his Stock positions in 2006 and 2007 people thought he was crazy but it all made sense his SELLS two years later.


http://blogs.wsj.com/marketbeat/2011/05/04/soros-fund-selling-gold/

Great story in this morning’s Journal on how some of the savviest investors in the world have been positioning themselves around the precious metals boom. Perhaps the most interesting bit is how George Soros’ fund has been easing out of the gold trade. Gregory Zuckerman and Carolyn Cui report:

 

While many who buy gold do so to protect against future inflation, Soros Fund Management bought gold to protect against the possibility of the opposite — debilitating deflation, or a sustained drop in consumer prices.

But now the $28 billion Soros firm, which is run by Keith Anderson, believes chances of deflation are reduced, eliminating the need to hold as much gold, according to people close to the matter.

People familiar with Mr. Anderson’s thinking said he believes the Federal Reserve’s continuing to pump money into the system has reduced the likelihood of deflation.

The Soros team, meanwhile, isn’t especially worried about a surge in inflation. Mr. Anderson has argued that by the end of this year the Fed will signal that interest-rate increases are in the offing, possibly early in 2012, according to someone close to the firm. Higher interest rates would tend to suppress inflation.

The Soros fund has sold much of its gold and silver investments over the past month or so, according to this person.


Here is another link:

http://www.marketwatch.com/story/soros-is-selling-his-gold-should-you-too-2011-06-06


Buffet also sold his Silver positions and here is what his take is on GOLD

 

“Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”

and another:

“You could take all the gold that’s ever been mined, and it would fill a cube 67 feet in each direction. For what that’s worth at current gold prices, you could buy all — not some — all of the farmland in the United States. Plus, you could buy 10 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?”