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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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.

aheady's picture

Replaced??? Fuck that.

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.

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.

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)

DogSlime's picture

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

ParkAveFlasher's picture

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

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.

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 ..

swissaustrian's picture

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

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...

Smartie37's picture

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

falak pema's picture

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

Besides the skiing was very good! 

cougar_w's picture

Oh boy, today we get Snotty Tyler.

JustObserving's picture

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

semperfi's picture

He must have a PhD in Economics.

resurger's picture

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

v48AEk00's picture

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

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.

Sabibaby's picture

He should have sold paper gold instead.

resurger's picture

It sux to be him!

Conman's picture

How many tonnes was gold and how many was tungsten?

Gandalf6900's picture

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

giovanni_f's picture

no. it is now belong to goldmann sags.

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.

Ted Baker's picture


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!

q99x2's picture

Michael Paprotta stay away from my gold. You idiot!

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.

zerotohero's picture

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

imaginalis's picture

Could be better than Swiss chocolate filled with tungsten. Ouch

Robslob's picture




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

tocointhephrase's picture


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

Lost Wages's picture

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

ohreally's picture

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

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!

imaginalis's picture

What do you expect from a mogul?

Random_Robert's picture



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.

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.

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.

dark pools of soros's picture

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

apberusdisvet's picture

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

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


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!

ParkAveFlasher's picture

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

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.

tocointhephrase's picture


Lord Koos's picture

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

mayhem_korner's picture



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