Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Why Record-High Stock Prices Mean You Should Buy More - 20th Nov 19
This Invisible Company Powers Almost the Entire Finance Industry - 20th Nov 19
Zig-Zagging Gold Is Not Necessarily Bearish Gold - 20th Nov 19
Legal Status of Cannabis Seeds in the UK - 20th Nov 19
The Next Gold Rush Could Be About To Happen Here - 20th Nov 19
China's Grand Plan to Take Over the World - 19th Nov 19
Interest Rates Heading Zero or Negative to Prop Up Debt Bubble - 19th Nov 19
Plethora of Potential Financial Crisis Triggers - 19th Nov 19
Trade News Still Relevant? - 19th Nov 19
Comments on Catena Media Q3 Report 2019 - 19th Nov 19
Venezuela’s Hyperinflation Drags On For A Near Record—36 Months - 18th Nov 19
Intellectual Property as the New Guild System - 18th Nov 19
Gold Mining Stocks Q3’ 2019 Fundamentals - 18th Nov 19
The Best Way To Play The Coming Gold Boom - 18th Nov 19
What ECB’s Tiering Means for Gold - 17th Nov 19
DOJ Asked to Examine New Systemic Risk in Gold & Silver Markets - 17th Nov 19
Dow Jones Stock Market Cycle Update and are we there yet? - 17th Nov 19
When the Crude Oil Price Collapses Below $40 What Happens? PART III - 17th Nov 19
If History Repeats, Gold is Headed to $8,000 - 17th Nov 19
All You Need To Know About Cryptocurrency - 17th Nov 19
What happens To The Global Economy If Oil Collapses Below $40 – Part II - 15th Nov 19
America’s Exceptionalism’s Non-intervention Slide to Conquest, Empire - and Socialism - 15th Nov 19
Five Gold Charts to Contemplate as We Prepare for the New Year - 15th Nov 19
Best Gaming CPU Nov 2019 - Budget, Mid and High End PC System Processors - 15th Nov 19
Lend Money Without A Credit Check — Is That Possible? - 15th Nov 19
Gold and Silver Capitulation Time - 14th Nov 19
The Case for a Silver Price Rally - 14th Nov 19
What Happens To The Global Economy If the Oil Price Collapses Below $40 - 14th Nov 19
7 days of Free FX + Crypto Forecasts -- Join in - 14th Nov 19
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19

Market Oracle FREE Newsletter

$4 Billion Golden Oppoerunity

The Soros Effect: The Market’s Clear Rejection of Authority

Politics / Central Banks Jun 09, 2011 - 04:41 AM GMT

By: Dr_Jeff_Lewis


George Soros has broken central banks, built a billion dollar fortune, and awarded himself fans around the world who adore his no-nonsense speculative approach.  While he was once a kingpin of the financial markets, he took a backseat years ago to step away from his Quantum fund, only to return to an audience that has long gone.

Ordinarily, a man of his influence would have the power to sculpt the financial markets as he saw fit.   Empowered with billions of dollars, he could find an emerging trade, announce his stake, and allow the financial followers to make his vision a reality.  This had been the case with many of his investments; they were necessarily part of the playground that is social proof. 

But this time the markets are different – Soros doesn’t matter.

If it were the year 2000, Soros sale of his paper gold positions would have sent the market into a tailspin.  Gold would have dropped precipitously as investors, in for the long haul, began to question whether or not he had a leg-up on their investment thesis.  However, when Soros exited his gold position just weeks ago, no one listened. 

Instead, gold is off only 2% in the wake of his exit.  In culling back his exposure, the market dipped, only to find enough buyers and believers who are in it for the long haul.  We questioned whether or not Soros had been playing the hand of the manipulators, who should value his influence in shaping market dynamics.  He may have played their hand, but individual investors are calling his bluff.

The Biggest Bubble: Optimism

While it may be hard to find an optimist in a world filled with uncertainty, they do certainly exist all around us.  In the mainstream press, politicians voice solutions to the United States’ debt woes with grand plans so great they will take a decade to conquer.  Talking heads eat up the plans, as if they had already been executed.

But in government, there is no execution.  There are only idealists.  There are those who forecast changes in government so large that it should only be months before the American economy experiences a great rebound.  These idealists are the only optimists left.

On the other hand, the realists—the pessimists to traditional thought—are the only traders willing to stake their bets in the future.  They’re doing the executing as the idealists throw up grand plan after grand plan. 

In the metals markets, it is he who puts his money where his mouth is that has real influence in the markets.  Soros had no money where his mouth was—he had only paper bets in a fictitious market and the certainty that he could make a minor profit in a short-term bull run.

It should be come as no surprise that while the stock, bond, and currency markets may bow down to Soros’ wagers, metal investors aren’t so willing.  The widespread rejection of Soros’ brand should be social proof to the rest of us that the metals markets dominated by Wall Street bankers are still financed by every day, average investors who are in metals to own metals, not to own more dollars and cents. 

This is only the beginning of a revolution in modern finance—the individuals still call the shots.

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of and

    Copyright © 2011 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules