'Big Short' Investor Michael Burry Goes Hard on Gold, Invests $10 Million in Q1

Michael Burry, an investor famous for making a fortune by anticipating the 2007 subprime mortgage crisis, made a sizable bet on physical gold. According to regulatory filings, Burry’s Scion Asset Management purchased over 440,000 Sprott Physical Gold Trust units, a closed-end fund that invests and holds its assets in physical gold bullion.

Big Short’s Investor Michael Burry Made a $10 Million Gold Bet

Michael Burry, an investor known for anticipating the 2007 subprime mortgage meltdown, has made a huge bet on the rise of gold. Burry, who amassed over $100 million for its accurate prediction, purchased 440,000 Sprott Physical Gold Trust units through Scion Asset Management, valued at 10 million at the end of Q1.

The Sprott Physical Gold Trust is a closed-end fund that holds its assets as physical gold bullion, targeting investors who want to acquire gold exposure without having the inconvenience of handling and providing custody of physical gold bullion. Sprott alleges that it only invests in London Good Delivery (“LGD”) physical gold bullion, produced by London Bullion Market Association (LBMA) refiners.

Burry’s bet highlights the investors’ renewed interest in the precious metal, in the context of world markets’ geopolitical and economic conditions. While Burry has not disclosed the motivations behind this investment, other analysts have assessed gold still has upside potential. Peter Schiff, a financial analyst and gold bug, recently predicted an “explosive growth” in gold prices, inviting investors to take advantage of what might be the ” biggest precious metals bull market in history.”

Jan Nieuwenhuijs, a gold market analyst, stressed that several factors, including the rise in central bank gold purchases and the high stock market valuation, are signaling the start of a multiyear gold bull market. Nieuwenhuijs’ analysis concludes gold prices might reach $8,000 per ounce in the next 10 years.

Burry’s investments also included Chinese e-tailers such as JD.com and Alibaba. According to regulatory filings, Citigroup, HCA Healthcare, and Sprott Physical Gold Trust complete Burry’s top picks.

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