Demand for gold rose by 21 percent in the first quarter of 2016.
According to media reports, Druckenmiller, whose net worth is estimated at $4.4 billion, is making long-term investments in gold while holding short positions on US companies’ shares.
In January-March, investment fund Jana Partners managing assets worth $11.6 billion invested in gold for the first time in 12 months, having bought shares in SPDR Gold Trust for $5.9 million.
CI Investments Inc., the investment subsidiary of Canada’s financial giant CI Financial, bought 2.81 million shares of SPDR Gold Trust. It also purchased 1.5 million shares in Barrick Gold.
In the first quarter of 2016, the price of gold jumped by 16.2 percent, from $1060.5 to $1232.4 per a troy ounce, the biggest since 1986. Between the beginning of the year and May, gold rose by 19 percent, to $1280.4 per a troy ounce. In 2016, Barrick Gold shares rose by 2.5 times, from $7.38 to $19.45.