Why is George Soros Selling Off His Gold and Silver?

Business Insider published an interesting story today revealing an even more interesting tidbit: George Soros's hedge fund is dumping gold and silver:

On the other hand, according to reporters Gregory Zuckman and Caroline Cui, Soros has been a seller of gold and silver lately.

What's interesting is why: Soros no longer sees a big threat of deflation. Huh? Yes, while the average person may still think of gold as a bet to counter inflation, the metal obviously surged during the deflation scare, and the attendant raft of central bank easing moves. Those are clearly coming to an end (for now), and thus that theme is coming to an end.

Recently, gold and silver have taken a hit. Gold was down $39 since Monday and "U.S. silver futures have lost 14 percent over the past four sessions, wiping out gains from the previous three weeks that took the price to a 31-year top just below $50 on April 25," CNBC reports.

Still, though, many see gold as safer than the U.S. dollar. Who? Take Mexico for example.

CNBC says Mexico became the latest emerging economy to ditch holdings of U.S. dollars in favor of gold. The country bought over $4 billion worth of bullion between January and March, "while the currency of its biggest trading partner sits at 2-1/2-year lows"

"The size (of the purchase) is certainly pretty chunky to have been accomplished in that space of time, "Credit Suisse precious metals analyst Tom Kendall told CNBC. "So it certainly gives another sizeable layer of support to gold's position in the international reserves system."