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Legendary fund manager George Soros has sold nearly $650 million worth of gold ETF GLD, opting instead for gold mining stocks. Here are several stock and ETF ideas for investors who would like to follow suit.

Precious metal investors have been on a wild ride so far in 2011. After falling to start the year, gold took off from its level just above $1,300/oz., skyrocketing higher on inflation concerns and an increasingly weak dollar.

The price eventually hit the $1,577 mark in early May before quickly selling off, falling by close to $100/oz. in a matter of weeks.

While a stronger dollar and declining fears over inflation in some of the world’s key emerging markets has certainly played a role in gold’s short-term demise, some believe that gold has hit a near-term top and that this is just a speculative bubble popping.

Many have attributed at least part of the tremendous run-up in gold prices to the surge in interest in gold ETFs, tools that have been embraced by everyone from small individuals to billionaire hedge fund managers.

Many of the world’s largest (and most successful) managers have put huge chunks of their assets into precious metals ETFs over the last year, and investors seeking to replicate their strategies have utilized the exact same instruments to express similar views.

One often outspoken hedge fund guru who has had plenty to say about gold in months past is George Soros, the billionaire manager who is probably most famous for his Quantum Fund and attempts to “break the Bank” of England in the early ’90’s.

Soros called gold the “ultimate asset bubble” in 2010 but maintained large positions in the metal nonetheless, riding gold exchange traded products (ETPs) to new heights as investors around the world piled into precious metals.

However, it appears that recently Soros has finally put his money where his mouth is and has pulled back significantly on his gold holdings, apparently embracing his talk of a bursting bubble in the sector.

According to recent reports, the legendary hedge fund manager sold nearly $800 million worth of the yellow metal in the first quarter of 2011, representing a huge reversal in sentiment on gold. Soros Fund Management now owns less than 50,000 shares of SPDR Gold Trust (GLD)—worth about $7 million—a huge selloff considering that at the end of 2010, he owned close to 4.7 million shares of the fund (valued at just over $655 million).

Additionally, it was reported that he sold five million shares of the iShares Gold Trust (IAU) as well, further demonstrating Soros’ sudden disdain for the physical metal.

However, the news wasn’t all bad for gold investors; although Soros did sell off some gold miners such as Kinross Gold Corp. (KGC) and Novagold Resources (NG), he did add to his position in the world’s largest gold miner, Barrick Gold (ABX), and also bought up more shares of Freeport McMoran Copper and Gold (FCX).

Many have noticed that mining stocks have failed to keep pace with the appreciation in the related metals, potentially making it more attractive to achieve commodity exposure indirectly through stocks of companies engaged in the extraction of natural resources.

Soros apparently falls into that camp, willing to take a second look at some of the mining companies and content to concentrate his position in gold-related equities for the time being. After all, even after the large selloff, Soros still has over $200 million in gold-related ETPs, meaning that this may be more of a shift than an outright abandonment of his position in the metal.

”I assume he was sitting on a gigantic mountain of profit in that position and the prudent thing to do would’ve been to book some of it,” said Matt Zeman, head of trading at Kingsview Financial.“Because he’s leaving, you’re going to see a lot of small speculators jumping ship.”

NEXT: Five ETFs That Track Gold Miners

Tickers Mentioned: GLD, IAU, GDX, GDXJ, PSAU