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Dan Loeb's Top Position At May 31: Gold
Third point, which was down 0.4% in May, yet up 9.7% YTD, has ignored the noise of what other asset managers did as of March 31, and as per its most recently released monthly holdings report, has kept gold its top position (no three month delay here: this is as of May 31). We wonder how many other hedge funds took advantage of the herd of 13F chasers who offloaded precious metals in imitation of what Soros did some time in February and March, only to load up at lower prices.
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It is also Einhorn's top position as of some time recently.
"The best insurance is an axe in your attic."
-- Some guy from Louisiana
At first glance, I thought the reference was to violence, or to deter same.
Now I see that, as we're talkin' Looseeanna, it's in reference to an escape clause.
Can't make this shit up. From Marketwatch's website:
Ten reasons why markets will soar
Dow 20,000, here we come
A day after the Dow saw its worst single-day point drop since June 2010, James Altucher makes the
case that it's not surprising that the market needs a day or two before blasting off to ... Dow 20,000
Hey, why the hell not. Check out the Yahoo forums to see what we're up against. There is no criteria for correctly valuing anything. You would think that people would learn after taking a 50% haircut on their McMansion, but apparently they just quit paying the mortgage and buy CMG stock instead.
that is EXACTLY the point!!
I junked you for writing in capitals. There is no need to shout, we are neither deaf, nor retarded.
Who is this "we" you speak of?
I am a little retarded (but Aloucher is a douche bag).
And they're still just text characters...deafness and retardations still apply. Get over it.
I read that entire guys "assesment" of how and why we will have a DOW 20,000....complete and utter fantasy.
It is scary that there are "educated" people out there who really BELIEVE in these "centrally-planned, gov't stimulus" philosophies. While these MAY have helped bring the US out of the great depression in the 1930's....things are COMPLETELY different now. Back then, the gov't we relatively small and did not spend very much in general...but today, spending is everywhere....and therefore, gov't "stimulus" programs have little if any of the desired effect. Hell, we have 40 years of HARD PROOF that these ideologies do not work...in fact, we know that they have done nothing but gutted nearly destroyed the manufacturing base and our economy in general -(And the middle class right along with it)
Reading ridiculous shit like thiswould be funny if it were not so pervasive and dangerous....but it actually is worriesome because so many of these idiots continue to believe that if we just keep the pedal to the floor...eventually the economy will get going again...(nevermnd that we are trying to pull a 14 trillion dollar debt load around)
WORTHLESS...
Can someone help me understand something? I come from a perspective of humble ignorance on why raising margin requirements actually lowered the price of silver. I would think requiring someone to physically allocate more silver to their holdings would resort in a temporary demand spike while the funds involved met the new requirements, and not a sudden drop-off in spot prices.
Please don't flame me. I ask here because if there is any group of folks that know their salt, it's ZH posters.
when your margin requirement is raised you must immediately come up with more cash to meet it. many times the individual is margined to the max, and cannot come up with needed cash. some of the position must be sold to get back under the margin requirement. this creates supply thereby driving down price.
This issue has been explained several times in the comments threads of zerohedge over the last month or so. Couching your statement with that last sentence almost makes your post seem fake.
Not really. Recognize humility.
Margin hikes have nothing to do with actual physical holdings. Margin hikes are on the silver 5000 ounce traded commodity baskets at the comex. Traders take a position (long or short) and at the end of day price, must settle their accounts by either paying out or receiving the difference in price per 5k contract. The margin and maintenance requirement increase limits the amount of contracts a small trader can have because he must tie up more money into each contract, thereby reducing his amount of contracts. The consensus is that this hurt small speculators that were long silver as they had to reduce their amount of long positions to cover the increased requirements for each contract they had long. This was not offset by the hedged miners and banks (short) as they had deep enough pockets to not have to reduce their positions, so the sell off commenced. I believe this to be correct and I hope this helps.
I want to thank those of you that answered my question and gave me something to chew on. I have actually read a few different explanations for this, market news, etc and just couldn't wrap my head around why raising requirements would suddenly result in anything other than increased demand, and as I suspected I misunderstood what it meant. It is nice to have someone succinctly explain exactly why this happened -- not being a trader myself it is difficult looking from the outside to grasp it.
Thanks, guys, and God bless.
FH, it appears you have not understood the meaning of margin. Obviously you have not made an effort to research / understand futures contracts, margin reqmts, etc, and expect to get a tutorial from ZH readers. Please put in some effort yourself first, and ask questions that stump you even after you have done your research and some thinking.
Gold pretty much shrugged off the move in silver. I think the world elite are converting their wealth to gold as quickly as possible. We may be less than a year away from global monetary implosion.
The lesson up to now is that everything takes longer than you think, BUT, I agree with you that we are close because I think we won't approach default at a steady rate. I believe these things pick up steam and accelerate.
People who thought I was a nut two years ago because I said the USA would default and depreciate its currency are now asking me if they should buy gold. I refuse to tell them what to do. I tell them what I am doing and why, but that's it. If gold drops before it ramps to the sky, I wouldn't be surprise and am not going to be responsible for someone ruining themselves trying to time it/trade it.
The default in all fiat will come two weeks after a face to face of the G-20. That's a guess based on the May assault on silver. It will come as a bolt out of the blue and anyone not prepositioned will lose big time, both on the conversion to the new gold backed fiat, and in the ramp in the value of gold.
Smiddy,
Way I see it is they take the market down, kill the PM's, and hopium folks sell and run to USD's again.
My take is why sell your PM's when USD's are near worthless already?.Will we be stupid enough to do the same thing as in '08?.
Paradigmn has shifted mightily since then, we are as a nation broke as a dead dik dog.
Even if the crash the Mkt to do this, what's our alternative to retaining anything of value,what do you hold to be self sufficent?,so your not in the street begging for food?.
Damned if you do,damned if you don't.
Between June 21st and Oct 21st
Raising margins forces overleveraged brokerage accounts to either put-up more capital or reduce their positions accordingly.
From the Vietnamese link below:
"Therefore, when the bullion gold market suddenly falls into crisis, the pressure on inflation has been eased. And the information about the gold with impurities has turned out to be an effective method to curb the psychology inflation."
http://english.vietnamnet.vn/en/business/8876/tungsten-filled-bullion-gold-helps--cure-inflation.html
Coming to a country near you?
Excellent article. This could be used to manage inflation expectation.
For people in southern California, the coin show starts today.
http://longbeachexpo.com/
Incorrect or misleading statement in the article. Gold was already Third Point's top position @ 12/31 of 2010. So no, Loeb didn't "load up at much lower prices" after Soros sold. Loeb kept sitting on his position all these last months.
disregard.
"... per its most recently released monthly holdings report, has kept gold its top position ..."
There's nothing misleading about that phrase.