Soros says conditions "pretty perfect" for gold

* Billionaire investor says low interest rates help gold

* Cautions that heavy gold exposure risky

* Rapid change in world order sees China overtaking U.S.

* China needs to change course to avoid conflict

TORONTO, Nov 16 (BestGrowthStock) – Billionaire investor and
philanthropist George Soros may be cutting back on his gold
bets, but he says the precious metal still has some kick to it,
as long as conditions like low interest rates prevail.

“The conditions for (high) gold are pretty perfect,” he
said during a speech in Toronto Monday evening to accept the
Globalist of the Year award from the Canadian International
Council.

“The big negative is that too many people know this and a
lot of hedge funds are very exposed … Gold has a tendency to
go parabolic,” he said, pointing at its tendency to fall as
quickly as it rises.

In fact, gold fell for a third successive day on Tuesday to
its lowest level in two weeks as a stronger U.S. dollar kept
commodities under pressure, but spot gold (XAU=: ) was still
above $1,300 an ounce.

Soros reduced some of his big bets on gold in the third
quarter, trimming positions in miners including Barrick Gold
Corp (ABX.TO: ), Great Basin Gold (GBG.TO: ) and Newmont Mining
(NEM.N: ). He left large positions in NovaGold Resources (NG.TO: )
and Kinross Gold (K.TO: ) unchanged.

CHANGING WORLD ORDER

Soros also spoke on the changing geopolitical order,
outlining his expectations for a rapid decline of the United
States, equaled in speed only by the ascent of China’s economy (Read more about the fastest growing economy.)
since the global economic crisis erupted.

China, he told his audience — which included Bank of
Canada governors past and present and CEOs from banks and
corporate giants like Research In Motion (RIM.TO: ) — has been
unscathed by the crisis and now has a better working economy
and a better working government than the United States.

The present world order is on the brink of breaking down,
he said.

“There is now a rapid decline of the United States and a
rapid rise of China,” he said. “It is happening very quickly.”

He said that China got to where it is today by looking out
for its own interests, but he warned that the Asian powerhouse
would have to start considering the needs of others if the new
world order is to emerge intact.

“If they persist in their present course, it will lead to
conflict,” he said, adding that China’s neighbors are already
getting nervous about its rising global influence.
(Reporting by Pav Jordan; editing by Rob Wilson)

Soros says conditions "pretty perfect" for gold