George Soros steps up gold investment

George Soros, the US billionaire, has used his Soros Fund Management company to step up his investment in gold.

New regulatory filings revealed the investment vehicle had taken its holding in SPDR Gold Trust to 6.2 million shares by the end of 2009, more than double the amount it held at the end of the third quarter.

As a result, Soros Fund Management had $663 million (£425 million) invested in gold as of the end of 2009.

The move - which may prompt those looking for ways to invest their private wealth to consider increasing their activity in the precious metal - was made shortly before Mr Soros warned that the commodity is now the ’ultimate asset bubble’.

He made the comment at last month’s World Economic Forum in Davos, where he explained that low interest rates result in conditions where asset bubbles can be created, the Daily Telegraph reports.

According to Marketwatch, the move prompted futures in gold to climb during trading on the New York Mercantile Exchange, with the price ending 30c higher on $1,120.10 per ounce.ADNFCR-2318-ID-19623335-ADNFCR