Gold an ultimate asset bubble in bear market: George Soros

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Gold is poised to complete its 11th consecutive annual gain, the longest winning streak in at least nine decades, on the brink of a bear market. George Soros, the billionaire who two years ago called it the "ultimate asset bubble," cut 99% of his holdings in the first quarter, Securities and Exchange Commission data shows. Hedge fund managers John Paulson, Paul Touradji and Eric Mindich also sold bullion this year. While speculators in New York futures are the least bullish in 31 months, the median estimate in a Bloomberg survey of 44 traders and analysts is for prices to rally 40% to $2,140 an ounce in 2012. The divergence of views is widening after prices fell 19% from a record close of $1,900.23 on September 5, or 1 percentage point away from a bear market. As some investors retreated to cash amid a $10-trillion slump in global equity values since May, others bought more metal, taking holdings in exchange-traded products to an all-time high two weeks ago. Bullion's 7.8% gain in 2011 means it's on track to beat stocks, bonds and dollar for a second straight year. Bullion was at $1,531 in London, below this year's average of $1,572.47 and six times more than when the bull market began in 2001.