Almost everyone these days is recommending buying gold as a gold hedge, except for one person. George Soros is recommending investors to sell gold (or stay away from it), insisting that we are experiencing a gold bubble that will burst, sooner or later. But since he only sold 6% of his GLD shares, he probably thinks it’s later.

George Soros is not someone to be taken lightly, and he nearly always predicts the future when it comes to the financial world. One of the most famous stories about this person is when he nearly bankrupted the Bank of England after shorting $10 billion worth of pounds sterling. The Bank of England was forced to devalue its currency, and Soros made a billion dollars. Not too bad for just a Wednesday’s work.

Just over 2 years ago (in April of 2008) when the barrel of oil was trading at $110, I remember watching a very interesting interview with Charlie Rose. Soros said that there was an oil bubble. Oil reached an all time high of $145 in July, and then tumbled to $37 by the end of 2008. Oil is trading at at $73 at the moment.

I think gold has still room for another 15%, after that it will collapse, and unlike oil, it will never go up again. Gold is not something we desperately need to survive, oil, on the other hand, is.