Posted on 08/15/2013 9:30:55 PM PDT by TexGrill
Billionaire hedge fund manager John Paulson, who told investors as recently as last month that they should own gold, cut his holdings in the metal by more than half as prices plunged into a bear market.
Paulson & Co., the largest investor in the SPDR Gold Trust, the biggest exchange-traded product for the metal, pared its stake to 10.2 million shares in the three months ended June 30 from 21.8 million at the end of the first quarter, according to a government filing Wednesday. The New York-based firm, which manages $18 billion, cut its ownership for the first time since 2011 due to a reduced need for hedging, according to an e-mail response to questions. It also sold options to buy shares in Barrick Gold in the future, filings show.
The hedge fund is following other money managers who have been more aggressive in getting out as investors lost faith in gold as a store of value. Prices plunged by a record 23 percent in the second quarter as U.S. equities rallied and inflation was muted, while the Federal Reserve suggested it will reduce fiscal support for the economy. Billionaires George Soros and Daniel Loeb sold their entire SPDR stakes in the past quarter, U.S. Securities and Exchange Commission filings showed.
He saw the Armageddon premium come off sharply in the second quarter, and people prefer stocks as economic conditions started showing signs of improvement, said James Paulsen, the Minneapolis-based chief investment strategist at Wells Capital Management, which oversees about $340 billion in assets. There is increasing acceptance that the Fed may announce its plans to taper sometime this year.
(Excerpt) Read more at koreajoongangdaily.joins.com ...
The squeeze may be on.
They say there are 43 paper claims for each oz of physical.
When the music stops, that’s a lot of rump on the floor!
I still say the best investment is baked beans!
“I still say the best investment is baked beans!”
I may disagree, I’m betting big-time on canned tuna
Somewhere I still got a couple cans of Y2K tuna... want em? I’ll ship ‘em to ya!
;-)
but as to tuna fish, is it safe to buy still?....
canned tuna, salmon,ham,beef,spam....
Tuna is safe.
I have a geiger counter and haven’t detected any hot food...
not yet, anyways.
Doesn’t mean it can’t/won’t happen, though.
I’m gonna ride it all on canned tuna that spam stuff just doesn’t smell like the right investment for me.
Are you thinking of Hank Paulson and TARP? Isn’t that what was going on right before election ‘08.
Goldbug Ping.
Holding onto gold is better than selling it as its value will never drop so low as to be worth nothing.
That’s the next scandal I’ve been expecting for the last couple years — that the vault in London, which supposedly houses all the gold for the iShares Gold Trust, is as oversubscribed as “Springtime for Hitler.”
Holding onto gold is better than selling it as its value will never drop so low as to be worth nothing.\........
Think about what you just said for a moment.
he didn’t sell gold... he sold paper
the story is meant to keep the price from rising
good luck with that
The big guns say they’re going to sell their gold. Then everyone starts selling THEIR gold. Once the prices stop dropping all the big guns suddenly change their minds and buy gold instead.
Good investment tip
ping
You men eat your dinner, eat your pork and beans
I eat more chicken, than any man ever seen, yeah, yeah
I’m a back door man, wha, the men don’t know
But the little girl understand
Well, I’m a back door man
I’m a back door man
Whoa, baby, I’m a back door man
The men don’t know
But the little girls understand
(Doors lyrics)
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