George Soros, 81, the billionaire founder of Soros Fund Management LLC, increased his stake in SPDR Gold Trust, an exchange-traded fund tracking the metal, to 48,350 shares as of Sept. 30 from 42,800 and added options, according to Securities and Exchange Commission filings. Soros, who called gold the "ultimate asset bubble" in 2010, reinvested in gold shares after selling 99 percent of his holding in the first quarter of last year.
Since the start of this year, gold has been among the top five commodities after adjusting for volatility, while zinc was the best.
Central-Bank Buying
Central banks around the world added 157 tons to their holdings in the six months through November, World Gold Council data show.
China overtook India in the third quarter as the largest gold-jewelry market, according to the World Gold Council. The country's consumption will continue to grow this year, according to Albert Cheng, the Far East managing director at the council. Mainland China imported a record 102.8 metric tons in November from Hong Kong, trade data on Jan. 11 showed.
"Everybody is conditioned to think of returns in a winner fashion," said Stanley Crouch, who helps oversee $2 billion as chief investment officer at New York-based Aegis Capital Corp. "During times of crisis, volatility really spooks people, especially if it is in gold, as people look at it as a store of value. However, I believe we have put in a bottom for gold so we will see gold continue to climb."