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 - 12:15 | 2856063 newworldorder
newworldorder's picture

Come on lets give this guy a break. Even in medieval times the executioner was not blamed. This man was only performing his duty. Someone has to do it. Just look at that winning smile. Look at all the employers he has impressed in his long and illustrious career in gold sales. He has to be on the "insider" short list of experts - right ???????

Thu, 10/04/2012 - 12:34 | 2856091 THE DORK OF CORK
THE DORK OF CORK's picture

But states in Europe don't really own the stuff.....

Its held by each central bank.

The States remain in debt to the banking sector, be it a central bank or a commerical bank.

There is no true state fiat withen Europe or indeed the US.

Its all collateral money baby.

True states should not concern themselves with bank credit or Gold...thats the banks problem , their role should orbit the Fiat money system.

True states should just print money and tax the stuff and thats it......they should divorce themselves from the credit bsnking industry as they serve no purpose in a energy starved world.

If there is a deficit in the money /credit supply becuase the banks have stopped lending then they just print the stuff interest free.

That is what Fiat means in my book....... Fiat is not bank sov debt.

Zero hedge should really try to figure out what Fiat truely means.

http://en.wikipedia.org/wiki/United_States_Note
Thu, 10/04/2012 - 12:39 | 2856134 Bastiat
Bastiat's picture

How long until we see a central bank surrounded by tanks . . with the guns pointing in.

Thu, 10/04/2012 - 12:27 | 2856099 BrigstockBoy
BrigstockBoy's picture

Maybe he was the person casting gold around tungsten in those 10 oz "PAMP" bars?

Thu, 10/04/2012 - 12:40 | 2856136 lakecity55
lakecity55's picture

Actually, that is an interesting question.

Why haven't we heard any progress from the Feds?

The MSM said they were hot on the trail.

S/off.

Thu, 10/04/2012 - 12:37 | 2856127 Fix It Again Timmy
Fix It Again Timmy's picture

You must understand that this is modern alchemy - the ability to turn gold into paper and tungsten; we're damn good at it....

Thu, 10/04/2012 - 12:38 | 2856128 lakecity55
lakecity55's picture

Well, my stash is going up in fiats today.

Too bad I don't have a ton or two too sell with a spare to keep.

Thu, 10/04/2012 - 12:39 | 2856131 CURWAR2012
CURWAR2012's picture

if the persons did not take possession of the gold, SNB may still have it.

Thu, 10/04/2012 - 12:39 | 2856132 soopy
soopy's picture

hindsight FTW bitchez!

Thu, 10/04/2012 - 12:48 | 2856175 Wakanda
Wakanda's picture

"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."

Must be a "champagne powder" day on the slopes.

Thu, 10/04/2012 - 12:52 | 2856182 Segestan
Segestan's picture

2005? But that was when the Liberal Dream of Hope was Strong. He doesn't know what's what.

Thu, 10/04/2012 - 13:04 | 2856237 pig no 3
pig no 3's picture

They can always print swiss franks to buy euros and change them lateron for dollars to buy back there gold. Wat i really don't understand is that they were so stupid to sell anything if they needed the money. If you need money just let your CB know.

Thu, 10/04/2012 - 13:14 | 2856279 debtor of last ...
debtor of last resort's picture

The Swiss Franc is irreversible.

Thu, 10/04/2012 - 13:15 | 2856285 U4 eee aaa
U4 eee aaa's picture

No doubt he was selling for the government accounts and buying for his own personal account.

I don't think that helmet iz for skiing. I think he needs it just for walking around. We need to protect this guy in case he falls over. Anybody who sells gold at market lows should have head protection

Thu, 10/04/2012 - 13:27 | 2856331 THE DORK OF CORK
THE DORK OF CORK's picture

People just don't understand why central banks sold the Gold.......

Its because they gave up the post 1600s nation state model of control.......the decided to enter the 9th circle of hell , the Modern market state.

Fine ,fair enough as we in Ireland say.

But the state need not play ball with the banks either.

The banks can have their market .....but what gives them the right to create a market state ?

Who gave this political power to them ?

Answer : they simply took it as there has been little resistance.

The State can produce money that will not feed into in the banking sector period - it can divorce  itself from the Banks by producing Fiat.

This cuts both ways but the guys running the ship of state in these various Vassal states serve different masters.....this dynamic will not change until people understand the problem ,including the cuckoos in place in various key sectors of the ship of state , including the bridge and engine room.

Thu, 10/04/2012 - 13:34 | 2856345 BinAround
BinAround's picture

The irony is that he is still employed.  There are many money managers that correctly called gold but got fired for it.

Thu, 10/04/2012 - 14:29 | 2856578 newworldorder
newworldorder's picture

Its not about what you know but rather, whom you know and those that protect you.

Thu, 10/04/2012 - 14:25 | 2856558 odatruf
odatruf's picture

Just wait until the trades' counter-parties are hiring. I hope he can speak Mandarin.

 

Thu, 10/04/2012 - 15:38 | 2856960 AldoHux_IV
AldoHux_IV's picture

To whom did he sell to? China?

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