Gold Plunges; Paulson Liquidation Speculation Abounds Again As Fund Rumored To Be Down $1 Billion For The Day

Tyler Durden's picture

There are some crocodile tears over at the 50th floor of 1251 Avenue of the Americas this morning. With a holding of 168 million shares of BAC and 506 million in Citi, Paulson and Co. is down nearly $300 million on just its top two positions alone. When one adds the other top ten positions, which include $3.5 billion worth of GLD, as well as massive positions in ANG, CMCSA, STI, TRE, RIO, BSC, COF, WFC, MGM and many others, it is not surprising that the market is rife with rumors that the once vaunted bearish and now very much bullish (who according to Goldman's carefully crafted settlement press release yesterday, only achieved his subprime-related wealth due to prospectus misrepresentations by Goldman, which is now permanently in the public record) is down about $1 billion for the day so far. Of course, on a NAV of $31 billion this is not all that big, but likely will not help with the recent surge in redemption requests.... Or the need for liquidations. Gold is plunging, and according to market rumors the primary culprit is once again JP, whose GLD holdings that are merely a type of share class (which needs to be indexed lower as the AUM drops) are getting liquidated, pushing spot far lower. 

As a reminder here are Paulsons & Co.'s recent holdings:

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Pamela Anderson's picture

This guy James "Austin Powers" Altucher leaves in another planet!!!!!!! He is just nuts!
Is out there in CNBC saying that everything is fine... just buy!!!

I think he used to work for Cramer...

If you haven't met him yet... here you have him...

knukles's picture

And Jimbo's an ex-Goldmanite............

unwashedmass's picture


literally making me ill watching this and KNOWING our government and the "regulators" are colluding in what is nothing more than outright theft.



Mr. Anonymous's picture

For my money, Althucher is THE biggest douchebag in the kit.  By comparison, Abby Cohen and Cramer are positively sagacious. This guy must be subsidized by TPTB, because he is the worst stock picker I have ever seen.

bonddude's picture

He looks like a young Abbey, don't he ?



russki standart's picture

This guy is the worst stock picker because he is an entertainer, and is following orders from above. Personally, I mute the F@cker because his BS hurts my ears.

b_thunder's picture

Yes, he and Lenny "Nails" Dykstra were the two "investment stars" discovered by Cramer. He bragged about "discovering" them that and gave each of them a column on his web site.

While Dykstra is a common fraudster and a moron, Altucher is provocateur.  His main idea is to legalize insider trading, and to have Fed openly buy e-minis every day at 9am and 3:50pm in order to "create recovery."  HA!  Try putting both of them together:

a) Fed uses unlimited resources (printing press) to buy securities en perpetuity;

b) You are at the Fed or one of the Primary dealers, you know when, and how much the Fed will buy.  *AND* you can use this info to trade for yourself!


Pamela Anderson's picture

+ 100 Bwuaaa  haaaaaa Lenny "Nails" Dykstra.... Cramer touted him as one of the best 5 traders in the world! Bwuaaaaa Buaaaa....

Please watch this video (after short ad.) ... I promise that you are not going to waste your time...


thesapein's picture

that was great, and today's latest from same, even better:

Is it true that pot was made illegal mostly because white people didn't want white girls having sex with black men?


Janice's picture

No, the reason that marijuana was made illegal was because it would lead to more violent crimes ~ public media reason


Marijuana was made illegal because the young people were smoking it, having free love and sex, and did not conform to the traditional way of life, education, marriage and paying taxes. ~ whispered in the halls, a way of controlling the masses

Mr Lennon Hendrix's picture

Hemp oil would make Petrolium obsolete....

Paper monie?  Print the gold and silver certs on hemp, mang!

Yes it alters the mind, can't have that!

Bomb who?  Just pass the bong, mang!

Rusty Shorts's picture

Let's not forget the lumber industry, they lobbied to make hemp illegal, as hemp makes a much higher quality paper, and as Hendrix said, hemp seed is 50% high quality oil.


"Why use up the forests which were centuries in the making and the mines which required ages to lay down, if we can get the equivalent of forest and mineral products in the annual growth of the hemp fields?"
- Henry Ford

thesapein's picture

Enemy of Big Pharma, too:

(skip to about 5:50 in vid)

AVP's picture

I'm all for it!

After the collapse, it should be all the rage?!

And no tax either. Hey... this Armageddon thing doesn't look like such a bad deal after all!

<sarcasm off>

juangrande's picture

Was watching a doc. on the original prohibition. Apparently just before prohibition, Henry Ford was making a substantial number of his Model T's to run on ethanol (alcohol). Just after, he stopped completely. The original Diesel was run on veg. oil.  Apparently Herr Diesel had a mysterious disappearance on a cruise liner. Hmmmmmm.

StychoKiller's picture

No, because those of the southern, brown, Spanish-speaking persuasion were using it instead of the legally sanctioned alcoholic beverages of white folks!

bonddude's picture

I saw the Dyke touting his investment service

AGAIN on cnbc about a month ago.

Almost fell outta me chair !

thesapein's picture

Legalize insider trading? I kind of like that thought. The rest is junk, yes, but I've never quite got why insider trading was illegal, unless insider trading pertained to a tiered system of power, but that sort of power structure in the markets is what shouldn't be there. What I mean is that, say a bunch of us nobodies are just trading amongst ourselves based on the best knowledge we have, maybe each other, maybe our research, it shouldn't matter; There's no such thing as insider trading so no law is then required. The problem arises when something external grants a party a privileged power, introducing the tiered power structure, which is why, yes, what you're saying is correct, (a) and (b) are bad.

ZackAttack's picture

Altucher is some little long-only fund-of-funds "manager." He founded the stock tout board, affiliated with and currently media whores in order to talk his book.

miker's picture

People selling gold now because convinced of deflation.

If all the world equity markets tank and the bond markets freeze up, won't gold skyrocket as safe haven?

Mark McGoldrick's picture

No.  Look how gold performed in late 2008.

Abiggs's picture

Get ready for a rush into the dollar; DXY headed to 90 - skunky, I checked your supposed dollar/gold positive 2-year correlation theory... I think you're living on another a different planet bud.

Regards to you

bonddude's picture

Got some old coins which I love.

I won't even look at gold until it's under

800. Eventually, it will roar again but it will take

some time IMHO.

Johnny Bravo's picture

Three words.


Meanwhile, I'm up a ton on my vxx since yesterday!

How's that "buy physical gold at 1365" tripe working out for the goldbugs?

Spitzer's picture

Just great in Canadian dollars

RockyRacoon's picture

Guessing is not projection nor prediction. 

If you don't know why gold moves it will always be a surprise.

The gold purchases represent only 3 percent of the University of Texas Investment Management Co.'s $22.3 billion in investment funds, but it indicates how deeply the fund managers are concerned about the global financial future.

Gold ETF Assets May Grow Eight-Fold in Japan in Year, Mitsubishi UFJ Says

Assets held in Japan’s first exchange-traded funds backed by gold and other precious metals may increase eight-fold in a year as investors seek to protect their wealth in the country with the world’s biggest public debt, its largest publicly traded bank said.

ETFs backed by gold, silver, platinum and palladium stored in Japan may hold as much as 30 billion yen ($337 million) in July next year, from the initial 3.5 billion yen, said Osamu Hoshi, deputy general manager at Mitsubishi UFJ Trust and Banking Corp., a member of Mitsubishi UFJ Financial Group Inc. The yen-based funds from the bank were listed on the Tokyo Stock Exchange on July 2.

Concern that Europe’s sovereign debt crisis would spread sent gold to a record high of $1,265.30 an ounce on June 21. Japanese individuals with combined financial assets of 1,453 trillion yen, as well as institutional investors, may shift some of their money into physical metals as a store of value, he said. Public debt in Japan amounts to $80,000 a person.

About 10 million people who have accounts in securities houses in Japan for trade in equities and bonds will now have access to physical metal markets, Hoshi said. Bullion for immediate delivery was little changed at $1,207.05 an ounce at 4:11 p.m. Tokyo time.


GoinFawr's picture

I am flattered that you even bothered Abiggs. But you obviously need to try again. I recommend you adjust for the anomalies that occur almost immediately following any 2%+(ie 'sharp') increase in the spot POG in USD, as well as any manufactured naked paper drops of 1% or more.

"I think you're living on another a different planet bud"

Indeed I am, it's known to many as 'Earth'. Enjoy your time in the 'Amusement Park of Paper Bubbles' while it lasts. Heh, I am, I've been watching you and your duped ilk blithely dance around in it for many years now.

"DXY headed to 90". Suits me; the higher it goes the more real wealth I get for my empty paper promises. Anytime someone forces on me a contract laden with debt I didn't incur I pass it off at the first decent opportunity to any rube willing to part with hard assets for the apparent delusional 'privilege' of possessing such an onerous obligation. Trust me, it always works out for me and mine in the long run.

Bring on more deflationary hocus pocus~!

<washes hands>

Abiggs's picture

"it always works out for me and mine in the long run." - have you discovered the fountain of youth? Like I said earlier, at least you will have the shiniest casket in the whole graveyard with all of that gold...

Dream on Ponce De Leon, reality sinks in rather fast when you take your bag of gold coins and try to buy something at the grocery store...

There is nothing wrong with being a dreamer/poet but do try and keep it to yourself - otherwise you only confuse yourself and others into believing that your philosophically imaginative statements are true: "the dollar is trading more and more in line with gold" 

trav7777's picture

Fuck, what an idiot.

How did it work for the Argentines after they locked the banks and revalued the paper, you retard?  Try going to the store and buying something with obsolete FRNs if they pull an Amero on you.

Yeah, the Dollar will last forfuckinEVER just like every other fiat currency.  What does it take to get through to you morons?

Abiggs's picture

Maybe you should take it easy on the coffee goldbugger, nobody is forcing you to read/respond.

Maybe you also think that gold has been positively correlated to the dollar during the previous 2 years - oh wait, you weren't part of this conversation so you wouldn't know that your goldbug friend was actually bragging about this in a previous post...

If you want to jump on that boat with him, go ahead it only shows how objective you guys are...

trav7777's picture

Whatever the fuck you say, moron.

these people are not my friends nor do I agree with them OR you.

I am AGAIN surrounded by Philistines.

Among 100 of you perhaps 1 or 2 get it in any meaningful sense.

GoinFawr's picture

"...reality sinks in rather fast when you take your bag of gold coins and try to buy something at the grocery store..."

Heh, which grocery store is that? 'Food Flood'? 'StupidStore'? 'UnSafeway'? You're absolutely right, with the majority of cashiers being domeless wonderboys and girls at those parking lagoon situated institutions I wouldn't risk bothering to ask if they can tell specie from fiat. But I try to feed my family as little Monstrous Santa as possible, so I'll let you be a guinea pig for GMO's, or eat guinea pig infused veggies; I think both might apply.

Now at your locally owned producers' Farmers' Market. Well, those guys have some saavy, and clean food...

Post civil war, how well did paper confederate dollars spend at any grocery store compared to their gold coin siblings?

Abiggs, look today, and don't forget about the anomalies; never forget to adjust for the anomalies...


Abiggs's picture

I didn't know that you were around during the Civil War..

GoinFawr's picture

Hehe, nope I'm not quite that old... but I try to learn from past mistakes, mine or otherwise.


udecker's picture

"reality sinks in rather fast when you take your bag of gold coins and try to buy something at the grocery store..."

I still don't get this argument.

I don't take my bag of gold coins to the grocery store. I take one coin out, take it the nearest dealer, bank, etc, and exchange it for the currency du jour. While that currency I get is still worth whatever the market says it's worth, I'll take it to the grocery store and exchange that currency for something of value to me: food.

How much of a market disruption do you think rational holders of gold expect? So much that no one will exist to exchange their gold into something that others may consider to have value? In that case, why hold anything at all, except lots of farming labor and a trebuchet?


If that's how bad they think it's going to get, they wouldn't be holding gold. Why do you assume that's what they think?

Red Neck Repugnicant's picture

If you want to make a bet on gold, you need to consider four things:

1.  The threat of inflation

2.  The threat of deflation

3.  The threat of a currency crisis

4.  The threat of fraud in the metal market 

These are the four macroeconomic conditions that will drive the price of gold. Which one do you think will happen first?

Answer:  Deflation.  Gold goes down. 



JLee2027's picture

Fiat currency does not deflate sorry.  It always dies in a hyperinflationary spiral.

Johnny Bravo's picture

If only there was some member of zerohedge saying that gold was in a rising wedge and about to fall for the last few weeks... imagine all the money that wouldn't have been lost today.

I wonder where we could find such an astute and handsome person to warn us next time.
If only somebody like that existed.

Oh well.  GOLED BITCHEZ!!!!!  Let's have a ZH picnic when it gets to 25000!


trav7777's picture

Wow a whole $17.  Jeez.

I am short ZION, it's down like what 4x that?

Johnny Bravo's picture

I was bearish at 1265, and warning of a rising wedge before that.  That's more than 17 bucks, partner.

Spitzer's picture

Just like when you where barish at $720

Who cares now asshole ???

Johnny Bravo's picture

Nope, I was only bearish since 1220.

You must care, since your faggedy ass has to reply to all my posts.

trav7777's picture

Dude you're fucking AMAZING.  Bearish at 1220!  WOW.  A whole $30 above current spot!

Fuck man, your talent is REALLY wasted trolling ZH for goldbug morons.  You sure you're not really a professional trader?  I mean with calls like that and huge payouts that take months to deliver, it's amazing we can get your sagacious advice for free.

Bay of Pigs's picture

Trolls like Abiggs and Bravo are probably the same douchebags over at Mish's site posting as Tasty G and Clinton. I suspect they have other motives than to try and rattle the gold veterans around here.

Spitzer's picture

That short cover at 450,600,759 and 900 did you in eh ?

I reply because you are the only one that is dumb enough to short  gold.

Sands8oo's picture

It got to $1265 (US Dollars)?


I would cover those shorts if I were you - consolidation made for a nice correction to the downside, and good for you catching it, but the gold bull will totally freight train through anyone in the way by end summer/fall - put it down on paper - gold will be at 1500 by year's end.


Yours Truly,

Nathan Wind

Spitzer's picture

What the fuck are you talking about ???

I am up on the day on my gold in Canadian dollars. I am Canadian BTW

Johnny Bravo's picture

Do you want a cookie?

Does America Jr. even have cookies?