Based on recent inflation numbers coming out of China & globally, fund managers like George Soros & John Paulson added to or held strong positions in gold. When inflation rises physical gold & silver keep real value. During the last major bull run of precious metals in the late 70’s & early 80’s all time high prices were realized based on run-away inflation.
As inflation was brought under control the price of metals retracted, this is all a part of the normal economic cycles. What didn’t change long-term was the purchasing power of gold & silver. While today, we are seeing inflation numbers that are not reflecting the reality of the price indexes globally, the brightest guys in the room are not fooled. They are holding and increasing their position in gold. Read the latest on this from CNBC: Rising Inflation, Red Hot Metals.