“Big Short” Michael Burry says this is the age of gold, refers to crypto “pollution”.
(Kitco News) In a rare comment, investor Michael Burry “The Big Short” has weighed in on gold, suggesting it’s time to stock up on the precious metal due to the risk of crypto contamination following the FTX collapse.
Burry, who runs hedge fund Scion Asset Management, is known for spotting the mortgage crisis early and making a fortune against the US housing bubble. In 2019, an investor made millions buying GameStop stock, long before the Reddit craze took over the stock.
Burry rarely comments on gold, making this call much more special for traders. According to him, the crypto chaos caused by the FTX saga puts gold in a good position.
“Long thought the age of gold would be when crypto scandals meet pollution,” Burry said in a since-deleted tweet. Burry has been known to delete his tweets shortly after posting them.
— Michael Burry Archive (@BurryArchive) November 15, 2022
His comments on Tuesday came as gold received a lot of attention from investors after impressive gains in November – up nearly 8%. The bigger move comes after seven straight months of losses. Analysts cite fresher inflation data, a weaker US dollar, crypto risk and a potential slowdown from the Federal Reserve as some of the main reasons behind the price gains.
At the time of writing, gold was $1,776 an ounce.
He also revealed that the famous investor currently has a large short position. “You have no idea how short I am,” Burry said in another tweet on Tuesday.
According to the Q3 regulatory filing, Burry bought Qurate Retail, which owns the QVC and HSN home shopping channels, for $10 million. In Q2, Burry sold most of its significant holdings, including Meta and Alphabet. However, these quarterly reports do not show short positions.
Meanwhile, the crypto space is reeling after one of the most chaotic weeks on record. The trigger was last week’s FTX collapse, which led to the crypto exchange filing for Chapter 11 bankruptcy protection on Friday and the resignation of CEO Sam Bankman-Fried.
After the FTX explosion, regulators have opened several probes. The US Department of Justice, the Securities and Exchange Commission and the Commodity Futures Trading Commission are all conducting ongoing investigations, Reuters reported this week.
U.S. and Bahamian authorities are now working to potentially bring Bankman-Fried to justice to the US to ask. The former FTX CEO has also been attacked by Bankman-Fried and other high-profile individuals, including NFL quarterback Tom Brady and NBA star Stephen Curry, for breaking Florida law and causing more than $11 trillion in damages.
Note: The opinions expressed in this article are those of the author and may not necessarily reflect his own Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee this accuracy. This article is for informational purposes only. It is not a request to exchange commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage resulting from the use of this publication.
#Big #Short #Michael #Burry #age #gold #refers #crypto #pollution
