The Wall Street Journal reports some investors view Soros, who has been aggressively purchasing the commodities during the past two years, and his associates' actions as signaling the good fortune and rallying is approaching a critical juncture.
"We haven't seen this much volatility in decades," according to metal trader Robin Rodriguez of Central Virginia, who said he is aware of fellow investors also liquidating their assets. "We have such large profits built in."
By contrast, since the precious metals never lose all of their value and are likely to gain back losses in the future, another investor advised purchasing at this time is not a bad idea.
"Some small, speculative players had to trim their silver positions as they couldn't afford to pay for such margins," Jerome Berset, a portfolio manager at Palaedino Asset Management in Geneva, told Bloomberg. "For long-term players with fundamental views, this may be a good time to get in for both silver and gold."
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