A lot of people have been speculating that gold has had such a good run in the last few years that it is about topped out.
The counter-argument is that with the Federal Reserve running the printing press at full speed and Europe heading into a deep recession, global currencies could be in trouble. And if currencies are in trouble, gold is historically a good bet.
Now we have the news that the mining group Anglo American has sold its remaining 11.3 per cent stake in South Africa’s AngloGold Ashanti for around $1.3 billion to Paulson & Co, the hedge fund run by John Paulson. You know, the guy who shorted subprime and made an unearthly fortune.
Here’s the official statement from Anglo American (via FT Alphaville):
Anglo American announces the sale of its remaining 11.3% shareholding (39,911,282 shares) in AngloGold Ashanti Limited to investment funds managed by Paulson & Co Inc for $32.00 per share in cash, generating proceeds of $1.28 billion. The proceeds will be used for general corporate purposes. Consistent with Anglo American’s stated intention to dispose of this non-core holding, Anglo American no longer owns any shares in AngloGold Ashanti.