Resume Of The Day: Meet The Man Who Sold 1,300 Tons Of Swiss Gold

Tyler Durden's picture




 

If you are the person who sold 1,300 tons of Swiss gold in the pre-"New Normal" era, you probably would like to keep that fact to yourself. But not Michael Paprotta, or the guy who did sell 1,300 tons of gold for the Swiss National Bank from 2000 to 2005. As a reminder, the price of gold in the period was between $250 and $450, making Gordon Brown's own dump of a meager 400 tons of UK gold between 1999 and 2002 seem like amateur hour by comparison. Assuming a current price of gold of $1800 and a blended disposition price of $350/oz, this means that Switzerland effectively gave up on just under $60 billion in upside. That's ok though, the SNB's balance sheet is now full to the gills with money-good EURs. Who needs gold in a fiat regime anyway? Certainly not Michael Paprotta who gives up on tens (soon hundreds) of billions in gold upside fiat equivalents in the morning, then goes skiing in the afternoon.

From LinkedIn:

And for those who are not familiar with the brilliant Swiss gold selling operation...

Source: SNB's Philip Hildebrand

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Thu, 10/04/2012 - 11:20 | 2855882 Zola
Zola's picture

Can you say - HIGH TREASON - can you spell G.U.I.L.L.OT...

These *holes are the reason the world has gone mad. People love to talk about integrity, doing the right thing in organisations, but the top 1% driving decisions have shown their utter and complete moral rot and thus need to be replaced.

Thu, 10/04/2012 - 11:32 | 2855933 aheady
aheady's picture

Replaced??? Fuck that.

Thu, 10/04/2012 - 11:43 | 2855964 CommunityStandard
CommunityStandard's picture

There will always be a top 1%.  Unless you change the rules of math.  Which the government seems to be trying really hard to do.

Thu, 10/04/2012 - 13:00 | 2856204 SMG
SMG's picture

Yes, that's true, but it would be much better if that 1% viewed themselves as servants to people to improve the lives of everybody.  Instead of as a Master Race, who wants to exterminate the "useless eaters" that are consuming the Master Race's resources.

Thu, 10/04/2012 - 14:46 | 2856669 margaris
margaris's picture

Governments are about to go george-orwell on our asses...

But no one can change math...

There are pyramids, and there are flat plains...

Flat plains by definition can't have top 1 % ...

Its about hierarchy...

People of the world please stop believing in governments (the most dangerous superstition there is)

Thu, 10/04/2012 - 11:35 | 2855947 DogSlime
DogSlime's picture

He sells the gold reserves then goes skiing.  If I was Swiss, I'd be really piste-off.

Thu, 10/04/2012 - 11:40 | 2855956 swissaustrian
swissaustrian's picture

We are.

That's why we've launched the gold initiative:

http://www.pmbug.com/forum/f2/switzerland-referendum-prohibition-gold-sa...

Thu, 10/04/2012 - 11:45 | 2855973 ParkAveFlasher
ParkAveFlasher's picture

Great.  The fair & good people of Switzerland can buy that gold back ... er, soon.  Not now.  But, soon.

Thu, 10/04/2012 - 11:54 | 2856012 swissaustrian
swissaustrian's picture

There are decent chances that this intiative might pass a constitutional referendum during summer of next year. We'll certainly get enough signatures (100'000) to get a vote. The question is how much time the SNB would be given to implement the 20% gold reserves rule which would be amended to the constitution.

Thu, 10/04/2012 - 12:13 | 2856058 ParkAveFlasher
ParkAveFlasher's picture

I hope the initiative succeeds.  However, I wonder what mass of actual gold "20% reserves" becomes by that time.  That is my reservation ..

Thu, 10/04/2012 - 12:20 | 2856082 swissaustrian
swissaustrian's picture

At current prices and current reserves, it would be about double the number of ounces of what the SNB currently holds.

Thu, 10/04/2012 - 12:28 | 2856101 Urban Redneck
Urban Redneck's picture

The SNB has the authority to acquire additional gold now.  Using derivatives with captive/controlled entities would keep it hidden on the required public reports.  The problem is that Swiss bankers aren't that creative or aggressive.

If they need some help with that one, they can figure out to find me...

Thu, 10/04/2012 - 11:20 | 2855884 Smartie37
Smartie37's picture

Paprotta E. Coyote..........suuuuper genius

Thu, 10/04/2012 - 11:23 | 2855895 falak pema
falak pema's picture

hey, give him a break ZH did no exist in 2000-2005 period! 

Besides the skiing was very good! 

Thu, 10/04/2012 - 11:21 | 2855890 cougar_w
cougar_w's picture

Oh boy, today we get Snotty Tyler.

Thu, 10/04/2012 - 11:23 | 2855898 JustObserving
JustObserving's picture

But he gets to date Charlie Munger.  There is always an upside to selling gold.  

Thu, 10/04/2012 - 11:23 | 2855899 semperfi
semperfi's picture

He must have a PhD in Economics.

Thu, 10/04/2012 - 11:43 | 2855970 resurger
resurger's picture

7 Years of experience in buying the top and selling the bottom is not really bad.

Thu, 10/04/2012 - 11:30 | 2855922 v48AEk00
v48AEk00's picture

57 connections ...not only dumb, but not very popular either, but then again, totally makes sense

Thu, 10/04/2012 - 11:30 | 2855923 Dr. Gonzo
Dr. Gonzo's picture

Cool. I was basicly buying from this guy and Gordon Brown way back then. I just bought a few more oz on Tuesday and it was really painful to pay the new $1800+ price. I sure miss these guys.

Thu, 10/04/2012 - 11:30 | 2855927 Sabibaby
Sabibaby's picture

He should have sold paper gold instead.

Thu, 10/04/2012 - 11:31 | 2855930 resurger
resurger's picture

It sux to be him!

Thu, 10/04/2012 - 11:32 | 2855932 Conman
Conman's picture

How many tonnes was gold and how many was tungsten?

Thu, 10/04/2012 - 11:33 | 2855938 Gandalf6900
Gandalf6900's picture

sorry I was just joking, can I have it back?

Thu, 10/04/2012 - 11:47 | 2855949 giovanni_f
giovanni_f's picture

no. it is now belong to goldmann sags.

Thu, 10/04/2012 - 11:39 | 2855953 swissaustrian
swissaustrian's picture

He was just a low level minion. The real decisions were made by others.

Read "Between the alps and a hard place" by Angelo Codevilla or "Gold Wars" by Ferdinand Lips to get the full story.

Thu, 10/04/2012 - 11:39 | 2855955 Ted Baker
Ted Baker's picture

WE WANT MORE LIKE THESE...CONTINUE LONG GOLD, CAD,CHF AND MXN BUT SHORTING MASSIVELY EUR & AUD....HOWEVER WE LIKE PLANTS WITH GREEN LEAVES SO LONG FACEPLANT AS A LONG TERM INVESTMENT. PRICE TARGET 35-38 BY DEC 31ST 2012

Thu, 10/04/2012 - 11:44 | 2855971 GFORCE
GFORCE's picture

I'm sure he's not bothered. Just following orders and getting paid handsomely.

Gold was an old relic in those good ol' days, barely worth a mention on bloomberg!

Thu, 10/04/2012 - 11:46 | 2855976 q99x2
q99x2's picture

Michael Paprotta stay away from my gold. You idiot!

Thu, 10/04/2012 - 11:48 | 2855983 swissaustrian
swissaustrian's picture

His current employee Raiffeisen Bank is the primary subprime lender in the (currently booming) Swiss real estate market. Rumors are they aren't reserving sufficient capital on many mortgages of subprime borrowers. Additionally, they seem to be incompetent in hedging interest rate risk with IR swaps. This bank is as bad as it gets as far as Swiss banking is concerned.

Thu, 10/04/2012 - 11:48 | 2855987 zerotohero
zerotohero's picture

He actually pulled off a major play - the gold was filled -not with tungsten- but swiss chocolate.

Thu, 10/04/2012 - 12:01 | 2856034 imaginalis
imaginalis's picture

Could be better than Swiss chocolate filled with tungsten. Ouch

Thu, 10/04/2012 - 11:49 | 2855990 Robslob
Robslob's picture

 

 

NOTE TO SELF:

When Central Banks start selling Gold in mass then BUY, conversly, when Central Banks begin buying Gold in mass SELL?

Thu, 10/04/2012 - 12:11 | 2856050 tocointhephrase
tocointhephrase's picture

NOTE TO SELF:

When Western Central Banks start selling Gold in mass then BUY, conversly, when Western Central Banks begin buying Gold in mass SELL?

 

Fixed it for ya

Thu, 10/04/2012 - 11:52 | 2856002 Lost Wages
Lost Wages's picture

He must have frostbitten his brain on all those ski trips.

Thu, 10/04/2012 - 11:55 | 2856013 ohreally
ohreally's picture

1300 tons of tungsten filled bars probably doesn't amount to $60 billion in forgone upside

Thu, 10/04/2012 - 11:55 | 2856016 InjuredThales
InjuredThales's picture

"He sells the gold reserves then goes skiing.  If I was Swiss, I'd be really piste-off."

Thread winning comment right here!

Thu, 10/04/2012 - 12:03 | 2856037 imaginalis
imaginalis's picture

What do you expect from a mogul?

Thu, 10/04/2012 - 11:56 | 2856018 Random_Robert
Random_Robert's picture

#WINNING...!

 

Between 1999 and 2000 I turned 1300 paper banknotes into a pile of junked car parts, and then I re-conditioned those junk parts and turned them into a restored automobile...

I then sold said automobile for a huge profit (some "collector" gave me 8500 paper banknotes for it), and I bought the cheapest thing I could find (which at the time happened to be 1 ounce barberous yellow relic coins that people were essentially throwing away for about $250 each)

Today, my original 1300 is convertible to about 35,000 in easy liquidity.

I am such an idiot.   I should have gone skiiing instead.

Thu, 10/04/2012 - 11:57 | 2856019 mliu_01
mliu_01's picture

I am sure a lot of you could send him a thank you note. Thank him for giving you a chance to stack a little more.

Thu, 10/04/2012 - 11:57 | 2856020 mliu_01
mliu_01's picture

I am sure a lot of you could send him a thank you note. Thank him for giving you a chance to stack a little more.

Thu, 10/04/2012 - 11:57 | 2856023 dark pools of soros
dark pools of soros's picture

Ben can buy it all back in a month...every month    with silver fries on the side

Thu, 10/04/2012 - 11:59 | 2856025 apberusdisvet
apberusdisvet's picture

The real question is how many times this tonnage has been swapped, leased, hupothecated and re-hypothecated.

Thu, 10/04/2012 - 12:01 | 2856030 adonisdemilo
adonisdemilo's picture

he must be one of the one percenters.

i bet he runs a roller.

i can do him a good deal--swap the roller for my 10 year old mini.

cheap insurance, only costs 34 quid to fill up and the dogs love the comfortable back seat.

makes you wonder if he's daft enough to fall for it.

i think he might be

 

Thu, 10/04/2012 - 12:01 | 2856033 Dr. Gonzo
Dr. Gonzo's picture

So if G.B. and Switzerland would have held onto their gold reserves like any normal soveriegn nation with it's people's best intersts in mind  instead of dumping it at the cheapest possible price then gold would basicaly be $10,000 an oz right now. Thanks for the cheap gold!

Thu, 10/04/2012 - 12:36 | 2856119 ParkAveFlasher
ParkAveFlasher's picture

It will be $10,000/oz as soon as they decide to buy it back. 

Thu, 10/04/2012 - 12:08 | 2856044 Inthemix96
Inthemix96's picture

A tear weld up in my eye.  This reminising of lost friends realised how much this reminds me of that one eyed scotch cunt, who did something so similar you would think it was planned.

Gordon McBroon, my heart aches for your fucking stupidity.  We miss you like a hole in the head, my old fat cunt.

See, not just one eyed scotch cunts are idiots.  You get the daft fuckers all over the world.

Thu, 10/04/2012 - 12:14 | 2856060 tocointhephrase
tocointhephrase's picture

THEY KNEW WHAT THEY WERE DOING! GB DID ANYWAY! FUCKING CRONY CAPITALISIM! FACIST CUNTZ!

Thu, 10/04/2012 - 12:08 | 2856046 Lord Koos
Lord Koos's picture

Editors of ZH are familiar with the "hindsight is 20/20" paradigm.

Thu, 10/04/2012 - 12:15 | 2856061 mayhem_korner
mayhem_korner's picture

 

 

Brian Sacks can print up $60B with one keystroke - OK, two (Ctrl and P) - and prolly will later this month.

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