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Morgan Stanley Redeems Paulson Investments: Explanation For Recent Gold Liquidation?

Tyler Durden's picture


In key news that may well be the missing puzzle piece to explain some of the very odd market moves in the past week, we just learned courtesy of CNBC, that Morgan Stanley's Wealth platform unit has finally, after months and months of considerations, pulled the plug on the fund that for the second year in a row is one of the three worst performing in the weekly HSBC report and is now redeeming. That in itself is not unexpected. What however is notable is that MS withdrawing hundreds of millions in feeder capital may well explain why gold has seen such a dramatic dislocation in the past week. Recall that at Paulson & Co, gold is not simply an investment - the bulk of direct gold investments at the once legendary investor are in the form of (largely underperforming) gold mining stocks - but an actual investment class. In other words, instead of being denominated in USD, investors are actually denominated in (paper) gold, with a fixed conversion into GLD at inception. This means that upon liquidation of gold-denominated shares, any gold-denominated shares, he has no choice but to sell GLD, and by virtue of this being the most liquid paper instrument in the PM space, gold. Does the massive gold dislocation in the chart below now make more sense especially since Paulson was aware of MS' intentions days in advance and traded, or in this case liquidated, appropriately)?

Spot the moment on the chart below where Paulson may have gotten the redemption fax:

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Wed, 12/19/2012 - 16:49 | 3080104 ACP
ACP's picture

They're still fargin' iceholes.

Wed, 12/19/2012 - 16:53 | 3080113 Pladizow
Pladizow's picture

This gold share redemption and GLD share sale was set up from the begining as another way to manipulate the metals.

Lets simply redeem at an opportune time and hit the metals in one more way.


Wed, 12/19/2012 - 16:59 | 3080127 New World Chaos
New World Chaos's picture

Definitely conspiracy, but what kind of conspiracy?  I think the recent metals beatdown (despite QE4) is because we are on the cusp of an epic false flag and the puppetmasters want decent prices on some last-minute solid gold toilets for their bug-out submarines.

Earlier this year, I discussed the possibility of a false flag tactical nuke in the London financial discrict on Dec. 21.  The puppetmasters would do this to “vaporize” the gold which they already stole, destroy a lot of evidence, fake their own deaths, start a war with Iran, stampede the herd off the cliff on a date when they will be easily spooked, institute the NWO financial system, and crush any last vestiges of freedom.  This would explain the recent propaganda tours of the BoE vaults by the Queen and others.

I figured the nuke would be in a basement close to the Bank of England (perhaps in the Guildhall?) so as to keep the damage to a minimum, but I recently found some numerological alignments which suggest otherwise.  The occult puppetmasters believe the number 11 represents something which is imperfect and ripe for destruction.  Now, the sum of the digits in the date = 11, 12+21 = 33 (the Masons’ holy number), and [1+2][2+1][1+2]=333.

The exact time of the solstice will be 11:11:37.4, London time.  I think they would be bothered by the imperfection and see it as a deeper clue.  Shouldn’t it be 11:11:11?  Triple destruction at the triple rebirth of the Sun, followed by rolling out the NWO financial system three days later to represent the rebirth of Horus?  There is a way they could make it work:  Use local solar time.  This is the “natural” time.  I calculated the longitude at which the solstice occurs at 11:11:11 local solar time.  This only happens at EXACTLY 0.11 degrees west!  I used Google Earth to find significant landmarks along this line and found it intersects the Temple Church.  This is the most significant occult site in London.  There is no way the Templars could have known the timing of this solstice when they built the Temple Church.  Astronomical knowledge was simply not that accurate.  Even NASA didn’t know the exact time of the solstice until this year.  The significance of this alignment will not be lost on the occultist puppetmasters.  They will see Lucifer as begging for a false flag- or at least a sacrifice in the Temple Church!

If they set off a nuke there with the intention of taking out the Bank of England, the crater would have to be two miles wide.


Wed, 12/19/2012 - 17:02 | 3080135 nope-1004
nope-1004's picture

Wed, 12/19/2012 - 17:12 | 3080177 trav777
trav777's picture

teh goledz are ALWAYS redeemable for cash.  The problems start happening when that isn't true.  Things like gold and oil cannot go no-bid, but cash can.

Wed, 12/19/2012 - 17:22 | 3080210 Sophist Economicus
Sophist Economicus's picture

Humm, cash can go 'no bid'    Just ask folks with crap currencies that are trying to bid for resources that can get better bids elsewhere.


Hyperinflation economies are effectively 'no bid' economies for cash -- to the extent that anything can go 'no bid'


Wed, 12/19/2012 - 17:36 | 3080270 FEDbuster
FEDbuster's picture

Damn, I thought my $100 trillion Zimbabwe bank note put me in the 1%.

Wed, 12/19/2012 - 17:58 | 3080373 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

My AG and AU are both no-bid!

Wed, 12/19/2012 - 17:07 | 3080158 Catflappo
Catflappo's picture

NWC = (on) LSD?

Wed, 12/19/2012 - 17:11 | 3080173 cifo
cifo's picture

GLD is the easy way to control the price of gold.

Wed, 12/19/2012 - 18:03 | 3080393 tallen
tallen's picture

His net worth is 15 Billion dollars. Even at 10% of that he could have dumped 200k gold contracts (~1/2 this weeks gold volume).

Knowing his insider trading record, it really does seem incredibly likely.

Shame he'll never end up in JAIL. He deserves a good pound me in the ass prison.

Wed, 12/19/2012 - 18:55 | 3080612 Panafrican Funk...
Panafrican Funktron Robot's picture

I personally consider myself agnostic on gold, which is why my portfolio is 25% gold, 25% cash, 25% stocks, and 25% bonds.  Considering that this is basically a "I don't take any position one way or the other on anything", because really, who the fuck can actually predict the future, it's interesting that my gold allocation would put me in the "gold bug" category by the MSM.  

Sun, 12/23/2012 - 01:49 | 3090904 MeelionDollerBogus
MeelionDollerBogus's picture

"because really, who the fuck can actually predict the future"

It's the repeating pattern from 277 weeks ago. Following high-line of the trend-channel. Picture here, price overlaid with ROC 277-week trend I just mentioned:

2012 06 18 277week roc 02 goldpricemodel 2011 Jan to 2012 Dec 28

here you see the matching of prices detected by this trend line & channel:

2011 dec 27 gold 01 | goldpricemodel | 277 week ROC visual confirmation

here you roll it out & compare with new data, so June's chart is added with data for Sep then again for Nov with a prediction slapped on there (colored shade-areas) just for fun (which is hard within the green/red high/low boundaries determined by math).

2012 09 18 277week roc 01 | goldpricemodel - http://stks.co/nAfJ

2012 11 05 277week ROC -goldpricemodel

You can follow the ROC changes 52 & 277 week here:

roc 52,277 weeks monitor $gold spot

and the roc 52-week pattern has been rolled out now to a prediction:

goldpricemodel 2013 roc 52-week as compared to 1980-present gold 52 week ROC 1980 to 2011

goldpricemodel 2013 projection

Wed, 12/19/2012 - 19:17 | 3080696 greensnacks
greensnacks's picture

Treasury auctions for Dec total $539 BILLION!!!  And gold declines ... wait, what? http://www.treasurydirect.gov/RI/TreasuryAuctionResults.rss

Wed, 12/19/2012 - 17:11 | 3080174 CPL
CPL's picture

...go to -->  www.4chan.org/x/


Lots of other guys there with crazy math building basement farday cages with tin foil hats to avoid the mayan rapture alien lizards.  You could contribute greatly in that forum, birds of a feather.

This forum however is only for tin foil financial talk until it's proven true months later.  So most of us have to stick around past Dec 21st to be smug when today's tin foil theories become tommorrows unfortunate marketplace reality.  So you might have to count us out in the rapture, we've all opened our mouths about future economic events.  

Basically most of us have prior committments to saying we were right, so you go on a head with the rapturing or number...stuff...thing.  We'll follow up later.


<gun fingers>

There you go champ.  See you on the 22nd.


Wed, 12/19/2012 - 17:35 | 3080262 NotApplicable
NotApplicable's picture

Farday cages! Of course!

*runs off to hardware store*

Wed, 12/19/2012 - 17:42 | 3080288 CrockettAlmanac.com
CrockettAlmanac.com's picture

Around here we just blast faradays with small game loads. No need to bring 'em back alive.

Wed, 12/19/2012 - 17:43 | 3080295 NotApplicable
NotApplicable's picture

Are you a Grey?

Wed, 12/19/2012 - 17:55 | 3080357 CrockettAlmanac.com
CrockettAlmanac.com's picture

No, I'm more of a mottled Pink.

Wed, 12/19/2012 - 18:07 | 3080412 NotApplicable
NotApplicable's picture

*checks bio page on your blog*

Why indeed you are! Might I suggest more sun? ;)

Wed, 12/19/2012 - 19:54 | 3080830 CrockettAlmanac.com
CrockettAlmanac.com's picture

Not really an option:


City           Sunny  Partly Sunny  Total Days With Sun

Pittsburgh     59        103                   162



Thu, 12/20/2012 - 08:27 | 3082028 CPL
CPL's picture

My god...the sky, it's full of bits of clouds!!


A potent sign indeed that one should wax the car to properly cure the coat.

Wed, 12/19/2012 - 22:47 | 3081376 americanspirit
americanspirit's picture

I'm just going to try to crawl into my microwave oven. That should ensure my survival. See you all after the 21st - somewhere. Thank god for GE.

Wed, 12/19/2012 - 17:43 | 3080291 SafelyGraze
SafelyGraze's picture

+10 cpl

wow. re: 4chan -- that is the kind of thrizzle the w3bz waz made for.

below please to find highlights from misc threads on yonder site.

- I plan to ask k$sha on a date. what kind of flowers would you recommend?

- my sphincter hurts. no, not that one. what's going on?

- I am typing with my eyes closed to allow my spirit guide to communicate with you. his name is banebdjedet and he is a little pissed off.

- let's talk about funerals

- this cannot be mere coincidence: budget gadget bridget tonsil

- ouch. ouch. SHIT. ouch! 


Wed, 12/19/2012 - 18:31 | 3080522 fuu
fuu's picture


Wed, 12/19/2012 - 18:23 | 3080490 giggler123
giggler123's picture

What you on about, his math seems good to me, [1+2][2+1][1+2]=333 as good as any other finanicals on here, just missing a ZH graph so I thought I'd invest in protection from those rapture, lizard greenbacks by ordering myself a helmet from like wise knowledgeable people over at www.stopabductions.com


Wed, 12/19/2012 - 18:52 | 3080601 CPL
CPL's picture

Looks legit....send them as much money as you can stuff into an envelope with no forwarding address and wait for a sign.

Wed, 12/19/2012 - 17:15 | 3080183 MillionDollarBoner_
MillionDollarBoner_'s picture

Just north of the Temple Church?

Hatton Garden, the centre of London gold dealing and the powerbase of the LMBA.

NICE!!! ;O)

Wed, 12/19/2012 - 17:31 | 3080199 New World Chaos
New World Chaos's picture

Thanks.  Didn't know that.  Is it perfectly north, so the 11's thing still applies there?   Maybe that is where the controlled demolition of the ponzi will begin.  No giant crater needed.  They must be scraping gold off the faucets right now.

Wed, 12/19/2012 - 17:35 | 3080265 MillionDollarBoner_
MillionDollarBoner_'s picture

Yeah...pretty much dead north...Chancery Lane tube station is in the middle and the Central Line is the deepest tube line at about that point (actually at Holborn which is the next stop west) so could do some underground bang-thingie and still leave evryone in the City and rich bits (Royal Boroughs) okay.

Just speculating...not got a terrist bone in my body, in case anyone is snoopin...!

PS you ever been to Temple Bar? The church is a dead replica of the Temple of Solomon, only teeny weeny !:O) 

Wed, 12/19/2012 - 18:01 | 3080387 New World Chaos
New World Chaos's picture

I have found that the London silver vaults are about 150m from the Chancery Lane tube station. 

Never been to Britain.  Couldn't pay me to go at this point.  Damn cops wouldn't even let me keep my pictures.

Wed, 12/19/2012 - 18:59 | 3080630 reload
reload's picture

Silver vaults are full of beautiful antique cutlery, candle sticks etc. Not bullion . well worth a visit' I expect it will be open as normal on the 22nd. Incidentally, you can just buy a single Georgian tea spoon if you like....no need to be an Arab prince to shop there. Its more like a market with independent traders than a 'retailer' highly recommended as a London 'to do' list item.



Wed, 12/19/2012 - 19:02 | 3080641 MillionDollarBoner_
MillionDollarBoner_'s picture

Have to concur.

Have bought and sold there meself. Well worth a visit :O)

Wed, 12/19/2012 - 17:26 | 3080208 Ignatius
Ignatius's picture

+1 for creativity.

Where do you find the time?  I struggle to get lunch on the table.

Wed, 12/19/2012 - 17:30 | 3080245 New World Chaos
New World Chaos's picture

They cut my hours way back because my productivity sucked.  Spent too much time researching conspiracies.  I am scraping by but refuse to go on the dole.

Wed, 12/19/2012 - 17:41 | 3080284 FEDbuster
FEDbuster's picture

Another brave soldier in Alex Jones Infowar.

Fri, 12/21/2012 - 05:16 | 3086075 New World Chaos
New World Chaos's picture

Thanks.  Anyone still here, scroll down to the end of this now-dead thread for a manifesto on our victory conditions.

Wed, 12/19/2012 - 18:00 | 3080382 Pareto
Pareto's picture

I'm thinking you live somewheres in Colorado or Washington state.  thats ok.  I wish I did too.

Wed, 12/19/2012 - 18:14 | 3080428 New World Chaos
New World Chaos's picture

Even better- I live in New Zealand.  But CO and WA would be great places to live if I wanted to live in America.

Wed, 12/19/2012 - 18:14 | 3080439 giggler123
giggler123's picture

Wow you've given this a lot of thought, no day job??  Ok that was harsh, sorry but what's the point in a NWO if you've nuked your world?  London being epicenter.


If this was a Jewish event not Mayian I'd say odd's on your half right.  Feel free to post back here in a few days time when I'm wrong and your proved right but don't expect a reply since I've probably been taken out in said nuke.

Wed, 12/19/2012 - 18:32 | 3080530 jballz
jballz's picture

I no get my twenty.... Now i cannot has my two??!?

It ain't easy bein a chronic hedge fund loser,

Yes it is.

Speaking of losers, Give your bullshit conspiracy rants a rest.

Gold will be a million bucks an ounce some day and these assholes will be screaming manipulation. Gets old...

Wed, 12/19/2012 - 19:20 | 3080675 Aurora Ex Machina
Aurora Ex Machina's picture

It might go the other way, you know.

If you missed it, the theme to the Olympics was Sing. Pay attention to the lyrics; the entire pagent was actually a rather touching homage to humanity 2.0+, and to something else.

She might surprise you.

Wed, 12/19/2012 - 17:04 | 3080120 nope-1004
nope-1004's picture

So Paulsen was selling in the after market, after Bernocchio's speech?  And he sold so quickly so as to send price down a vertical mine shaft on the 2 min chart?

I don't buy it.  Even Mossad's exit from GM is done over 12 months or so, because liquidating in a very short period of time doesn't yield optimum bid price.  Silver and gold have the banksters in a pickle.  The desperation evident in price activity is not just some large entity selling, in my opinion.  Look back at the chain of events and how the propaganda machine was hard at work dissing PM's around QE4.  The same shit just so unbelievable coincided the night they found and killed Bin Laden, both silver and gold were taken to the wood shed.

This is high level, top notch government intervention in the name of USD reserve status, as well as to protect the "print to infinity" policy that must now occur to avoid a US default.


Wed, 12/19/2012 - 17:05 | 3080152 duo
duo's picture

They will also say "look at the price of gold" when you pay $10 for a loaf of bread next fall, and the chained inflation still reads 2%.

Wed, 12/19/2012 - 17:09 | 3080171 kliguy38
kliguy38's picture

Please........let's not inject logic into this explanation......we all know Paulson would liquidate in thinly traded markets

Wed, 12/19/2012 - 17:19 | 3080191 Boston
Boston's picture

What's more important, the precise reason for the takedown, or the fact that you're being given an opportunity to buy at a lower price?

I just placed my first orders for physical since July....for both Ag and Au. And if the "sale" continues, I'll just thank the "markets" and buy more!

Wed, 12/19/2012 - 17:56 | 3080363 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

+1 same here.  Just got back from the local coin store with 60 more silver eagles.

Wed, 12/19/2012 - 17:40 | 3080279 Dr. Gonzo
Dr. Gonzo's picture

Agree. Silver was just about to kiss $50 and pass it's all time high in USD and they announced they just put a hit on Bin Ladin...who everyone forgot about and thought was dead years gone by. If your going to kill a Bull you need specataculor distraction. On the bright side I bought silver today at $31.20 spot. Happy to keep buying the at this level and lower. What the hell else am I going to to with my clownbucks? 

Wed, 12/19/2012 - 17:14 | 3080184 spankthebernank
spankthebernank's picture

For the love.... let them crush the price.  I for one, will stack, and stack and stack, and stack, and stack.....

Wed, 12/19/2012 - 17:18 | 3080192 noob
noob's picture

"They're still fargin' iceholes."...

Moroneys best bits (Johnny Dangerously)

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