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Paulson Gold Fund Down 27% In April

Tyler Durden's picture





 

Curious who the biggest casualty of last month's forced precious metal take down is? It may very well be John Paulson, who has systematically been blown out of all his concentrated positions in the past few years, and who, according to Bloomberg, just lost a record 27% in one month in his gold fund, and down 47% so far in 2013. If anything, it may explain the ongoing collapse in GLD holdings as he (among others) is forced to continue liquidating. The good news is that one levered players such as Paulson are finally blown out, there is hope that only far more rational, "non-weak handed" players remain at the table.

 

And some more news on the ongoing physical stampede out of Reuters:

  • India, the world's biggest buyer of the metal, will celebrate Akshaya Tritiya next week, the second-biggest gold buying festival after Dhanteras. Weddings have also started and will continue until July.
  • At 0934 GMT, the actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was 0.54 percent lower at 26,950 Indian rupees per 10 grams, after gaining more than a percent in the previous two sessions.
  • A stronger rupee kept the upside in prices limited. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
  • Premiums charged on London prices were at $7-8 an ounce on Tuesday.
  • The RBI could restrict the import of gold on consignment basis by banks only to meet the genuine needs of exporters of gold jewellery in late May, governor D. Subbarao said in the monetary policy statement on May 3.
 


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Tue, 05/07/2013 - 07:38 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Quick pivot into silver......flash it back to gold......no problem.

 

Don't try this at home.

Tue, 05/07/2013 - 07:46 | Link to Comment Burt Gummer
Burt Gummer's picture

Is Paulson panicking? Is he dumping everything? Or is he buying the dip with a dump truck in order to sit tight and be right?

 

http://www.youtube.com/watch?v=deuC8GPr31A

Tue, 05/07/2013 - 07:48 | Link to Comment francis_sawyer
francis_sawyer's picture

There's no such as "being right" owning paper etf's or assets...

Tue, 05/07/2013 - 07:59 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Long paper ETFs, Bitcoins, and warm unicorn farts.....one of these has to be a winner.

Tue, 05/07/2013 - 08:45 | Link to Comment kliguy38
kliguy38's picture

its a toss up between the farts and the bitcoins

Tue, 05/07/2013 - 09:05 | Link to Comment DaddyO
DaddyO's picture

Just did a quick search on eBay for Silver ASE's and it would appear that the premium is ~$7-8 per oz.

Did the same thing on Gold ASE's and the premium is ~ $130

So the disconnect is starting to solidify as the paper market gets monkey hammered...

DaddyO

Tue, 05/07/2013 - 09:58 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Either Paulson is trying to sell his plummeting shares and trying to get physical redemptions or he is being wiped out.

Most the gold and silver vets warned everyone here to stay away from GLD and SLV for a good reason. They are total Bankster frauds.

 

Tue, 05/07/2013 - 10:10 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

BTFD!

Tue, 05/07/2013 - 12:21 | Link to Comment James_Cole
James_Cole's picture

The good news is that one levered players such as Paulson are finally blown out, there is hope that only far more rational, "non-weak handed" players remain at the table.

 

Yeah exactly, once the guys holding billions of their own cash + billions of other peoples cash (aka weak hands) capitulate the guys with a fistful of coins (aka strong hands) can finally take over the place! lol

 

/s

Tue, 05/07/2013 - 12:36 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Your stupidity knows no bounds James. You just dont get it do you?

What part of "levered" don't you understand? Pathetic. 

Tue, 05/07/2013 - 12:57 | Link to Comment James_Cole
James_Cole's picture

Your stupidity knows no bounds James. You just dont get it do you?

What part of "levered" don't you understand? Pathetic. 

It's you guys that don't get it. Gold rose dramatically as long as the levered guys were buying it up. 

Considering the price movements of gld over the time period we know Paulson has held it, it's certain that he's had calls many times already but there comes a point when you've got to cut the dead weight from your portfolio (with him that's most of his portofolio I guess).

If he believed in it's future almost certainly he could come up with the cash to keep going.

Tue, 05/07/2013 - 13:34 | Link to Comment Bay of Pigs
Bay of Pigs's picture

As usual, you have it completely backassward. GLD is a fraud. It is not physical gold. What part of THAT are you missing? 

Your trolling isnt very good. Give it up retard.

Tue, 05/07/2013 - 14:27 | Link to Comment James_Cole
James_Cole's picture

As usual, you have it completely backassward. GLD is a fraud. It is not physical gold. What part of THAT are you missing? 

The 'paper' markets to a very large extent control the spot price, this should be obvious to everyone by now. I've been saying for a long time that the selling of etfs presents a lot of downward pressure on the price. If you were looking to pick-up phys for instance there's a high probability you'd be better off holding purchases until this storm has passed - there's a lot of leverage to go through. 

It's such basic common sense it's amazing people don't understand it...

And it's not a case of 'weak hands' its a case of people cutting their losses.

Tue, 05/07/2013 - 15:39 | Link to Comment auric1234
auric1234's picture

If you were looking to pick-up phys for instance there's a high probability you'd be better off holding purchases until this storm has passed - there's a lot of leverage to go through.

If you had a small bit of a clue, you'd know that the storm will have passed when GLD runs dry and the COMEX and LBMA default.

Good luck getting your purchase delivered by then!

 

Tue, 05/07/2013 - 16:04 | Link to Comment Bay of Pigs
Bay of Pigs's picture

LMAO, you just said above the ETFs were supporting the price. 

Do you watch anything happening in the physical market or are you just a Wall St troll/whore?

Tue, 05/07/2013 - 16:09 | Link to Comment James_Cole
James_Cole's picture

LMAO, you just said above the ETFs were supporting the price. Do you watch anything happening in the physical market or are you just a Wall St troll/whore?

When the ETF's are sold off the price drops, which has been happening at a dramatic clip lately. 

It's no coincidence that when ETFs were being heavily bought the price moved up dramatically. 

http://static3.businessinsider.com/image/511d435eecad04ac3c000002-960/mo...

Not rocket science folks. 

Tue, 05/07/2013 - 22:21 | Link to Comment Harlequin001
Harlequin001's picture

That's correct when ETF's sell off the price comes down.

It is no secret though that ETF's hold gold by the 'basket' for the banks, so when there is a physical shortage and the banks need to take their gold out to settle the price comes down.

So, a physical shortage which would normally result in a price rise manifests as a price drop. Have you got the bit about market manipulation yet?

Because you don't seem to have got the bit about only the boards of the respective banks knowing when the redemptions from ETF's will start and end, and therefore when prices will rise and fall.

Of course it's not just the ETF's that dictate the price, hitting a 400 tonne short in a matter of minutes also helps. So the choice is still physical gold which can be made into 'stuff' including money or skyrocketing stocks and bonds for which there will be no buyer when you need one.

Tough choice?

Tue, 05/07/2013 - 11:17 | Link to Comment Thisson
Thisson's picture

Ebay and Paypal have high transaction costs that get embedded into those prices.  So you should expect lower premiums if you use a local dealer such as a coinshop.

Tue, 05/07/2013 - 15:33 | Link to Comment auric1234
auric1234's picture

$85 premium in local shop around these parts.

 

Tue, 05/07/2013 - 08:04 | Link to Comment TeamDepends
TeamDepends's picture

That's right, would you buy paper seeds for your garden?  Breaking:  European Commission to criminalize nearly all seeds and plants not registered with government @ naturalnews.com!!  This is what happens when you allow government to disarm you.  Also, fuck you Monsanto!!!!!

Tue, 05/07/2013 - 08:09 | Link to Comment Sylvia Plath
Sylvia Plath's picture

Paulson'd........................... BiTcHz!!!!!

Tue, 05/07/2013 - 08:44 | Link to Comment francis_sawyer
francis_sawyer's picture

Criminalize unauthorized seeds... BWAHAHAHAHAHAHAHA!

~~~

See?... It's when I read shit like this that I KNOW that these stupid MF'ers are just digging their own graves... Try enforcing THAT ONE...

Just yesterday I was doing some weeding & I pulled on a sprig that I thought was a weed & up popped [still attached] part of the acorn from which a white oak sapling had busted up [in the middle of a fucking container of pansies]... A goddamned oak tree...

Now ~ there are some oaks around here, but the nearest one is probably at least a half a mile from my property line & all I have on my property are pines, cedars, maples, dogwoods, hickorys, & some Arbor Vitae's...

So I guess THE GOVERNMENT is going to have to start tossing birds & squirrels in detention camps... Fucking retards...

Tue, 05/07/2013 - 08:50 | Link to Comment Bearwagon
Bearwagon's picture

It's not that bad. In fact the rule does not apply to private persons, who barter their seeds on a non-profit base. Okay, cold comfort, but at least it's something.

Tue, 05/07/2013 - 08:55 | Link to Comment francis_sawyer
francis_sawyer's picture

Yeah well all I know is that, this time of year especially, all I do is look around & see every manner of onion blooms, or this or that sprouting up everywhere [hell ~ if you know what you're looking at you can have anything you want for free]... If Monsanto really wants to get busy, they should fucking corner the market in dandelions...

Tue, 05/07/2013 - 10:56 | Link to Comment Disenchanted
Disenchanted's picture

re: "If Monsanto really wants to get busy, they should fucking corner the market in dandelions..."

 

They had a look at my backyard and said fuck it, we can't win that battle.

Tue, 05/07/2013 - 11:29 | Link to Comment Disenchanted
Disenchanted's picture

btw, you can eat dandelion...and the yellow 'flower' part too.

It's been a long time, but I've had both in my lifetime, and could do it again if needs be.

Tue, 05/07/2013 - 13:28 | Link to Comment francis_sawyer
francis_sawyer's picture

Dandelions make fine tea [& wine]... That's why I mentioned it...

~~~

STATIST JOKERS ~ all of 'em...

Tue, 05/07/2013 - 08:53 | Link to Comment TeamDepends
TeamDepends's picture

But if you are a non-Swiss european, what are you going to fight back with, a shovel?  A ho (actually, honey traps are very effective when combatting this type of vermin)?

Tue, 05/07/2013 - 11:11 | Link to Comment FeralSerf
FeralSerf's picture

You could move to Finland.

Tue, 05/07/2013 - 11:53 | Link to Comment Going Loco
Going Loco's picture

Or the UK, now that it's likely we are exiting.

Tue, 05/07/2013 - 08:13 | Link to Comment samcontrol
samcontrol's picture

hey FU FS,, how can you be right when it,s not over ?

Tue, 05/07/2013 - 08:58 | Link to Comment francis_sawyer
francis_sawyer's picture

"Well Mr. Helper"... <in my Sam Kinison voice>...

~~~

Why don't you just compile me a nice list of FIAT currencies that have not ended in the graveyard... [If you need some help, you can go pull up that chart that ZH periodically puts up here that has little timeline bars on the FORMER 'reserve currencies']...

Tue, 05/07/2013 - 08:56 | Link to Comment savagegoose
savagegoose's picture

msrket makers shouldnt bet on sentiment,

Tue, 05/07/2013 - 08:14 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

dumping paper and driving to the gld warehouse and buying the real stuff at a discount by the looks of the gld "deposits."

Tue, 05/07/2013 - 08:18 | Link to Comment negative rates
negative rates's picture

I think he pooped his pants and is now wanting to get out with some money and fork/fck over some derivative buyers.

Tue, 05/07/2013 - 16:02 | Link to Comment mkkby
mkkby's picture

Paulson is a muppet, as are most of the trend following fund monkeys.  He jumped on the PAPER gold market late in the trend.  Everybody could see the technical support at 1550 was worn thin, and stops were ready to be gunned.

The dumb money is not individuals.  It is buy side funds.  I've always said that and it's still true.

Tue, 05/07/2013 - 08:07 | Link to Comment samcontrol
samcontrol's picture

NOW is the time to go contrarian....miners , paper pms, the whole fucking bunch..My favorite right now is pslv.

If you guys think we don't get one more paper move up ypu are DEAD WRONG, the game is fr from over.

By the way,, i am setting up self sustainaible farms in Uruguay, water , , electricity, farmland... Anyone interested... ? IT is going to be the NEXT FLIP category..

Tue, 05/07/2013 - 08:10 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

That you Simon?

Tue, 05/07/2013 - 08:28 | Link to Comment samcontrol
samcontrol's picture

Don't know who simmon is old lady, i think for myself.

Tue, 05/07/2013 - 08:20 | Link to Comment negative rates
negative rates's picture

Yea i'm in, just make certain the trees and houses are removed for easier planting.

Tue, 05/07/2013 - 08:27 | Link to Comment samcontrol
samcontrol's picture

What??The house are containers , they are from Canada, you can move them....
We can use the trees as energy...it is on the perfect spot on the equator but we do get midl winters..
the planting has started.

Minimum entry cost is 300k, areyou still in?

Tue, 05/07/2013 - 08:30 | Link to Comment samcontrol
samcontrol's picture

and if you want to bring me that much physicall to Uruguay , no problem...

but good luck with that.

Tue, 05/07/2013 - 08:39 | Link to Comment rayban
rayban's picture

I thought Ecuador was on the equator, not Uruguay.

Tue, 05/07/2013 - 08:51 | Link to Comment samcontrol
samcontrol's picture

The idea is to be at a distance
JUST right from the ecuator , not to hot not to cold...
i expressed myself badly, but trust me the three "farming" spots we have picked are just right and in 4 countries...but not ON the ecuator.

Tue, 05/07/2013 - 08:53 | Link to Comment samcontrol
samcontrol's picture

yes yes the ecuator is a dot and not a line .
yes yes Barcelona is in Italy.

Stick to the lakers dude.

Tue, 05/07/2013 - 09:00 | Link to Comment negative rates
negative rates's picture

Sure, i'll hit the road first thing in the morning, wit the trailor packed to the hilt.

Tue, 05/07/2013 - 10:07 | Link to Comment samcontrol
samcontrol's picture

ok you take your chances with martial law in the US
i'll do it in the fields half an hour from the beach.

Make your mind up already on this site, you guys always want to be right and have it both ways..

Tue, 05/07/2013 - 09:29 | Link to Comment johny2
johny2's picture

it is a nice place. although will get bit cold in few weeks. but still, with one nice uruguaya you should get through the winter just fine..

Tue, 05/07/2013 - 10:09 | Link to Comment samcontrol
samcontrol's picture

my wife is Argentine from Rio Grande.
my first girfriend was from Uruguay , she looks like a grandma now.

Tue, 05/07/2013 - 16:09 | Link to Comment mkkby
mkkby's picture

Good luck in Uruguay, douche bag.  Send us a post card some time.

Tue, 05/07/2013 - 07:41 | Link to Comment malikai
malikai's picture

Right side of the intellectual battle, wrong side of the leverage battle.

Tue, 05/07/2013 - 07:45 | Link to Comment francis_sawyer
francis_sawyer's picture

wrong to choose paper electrons over element #79 on the Periodic Table...

Tue, 05/07/2013 - 07:46 | Link to Comment Sudden Debt
Sudden Debt's picture

Funds and the general investor still feel the need that they may only invest in stuff that requires the least amount of handling or effort.

Owning real silver or gold is not a joke. Store it, and at one time sell it for the right price.

And not everybody is a salesman.

So people with low selfconfidence rather buy the paper stuff because they are aware of their limits. And are also not really aware of why gold and silver are the future but that's another story :)

Tue, 05/07/2013 - 08:23 | Link to Comment negative rates
negative rates's picture

So you are long dehumidifiers now.

Tue, 05/07/2013 - 07:55 | Link to Comment Fuh Querada
Fuh Querada's picture

must be worth it if only for the tan...

Tue, 05/07/2013 - 08:13 | Link to Comment Spectre
Spectre's picture

Very well put.

Tue, 05/07/2013 - 07:43 | Link to Comment Sudden Debt
Sudden Debt's picture

Paper... I only use the double paded version to whipe my ass with it... I'm pretty sensitive about that...

Tue, 05/07/2013 - 07:44 | Link to Comment malikai
malikai's picture

Try silk. It really is the best.

Tue, 05/07/2013 - 07:47 | Link to Comment francis_sawyer
francis_sawyer's picture

silk IS shit [in a sense]...

Tue, 05/07/2013 - 07:52 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Cat's got a point.

Tue, 05/07/2013 - 08:46 | Link to Comment thisandthat
thisandthat's picture

Nope; secretion, not excretion.

Tue, 05/07/2013 - 09:29 | Link to Comment francis_sawyer
francis_sawyer's picture

thus, the [in a sense] distinction...

~~~

I'll bet you WOW all the chicks at cocktail parties going into detail about the relative difference between secretions & excretions... I'm sure 'Agent Starling' can't wait to see your caterpillar collection...

Tue, 05/07/2013 - 14:26 | Link to Comment thisandthat
thisandthat's picture

If you make no distinctions... you should drop the droppings, though; I pity the chicks you try to WOW...

Tue, 05/07/2013 - 09:42 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Future biology will not define a difference.  Secretions are a remanufacture of digestive byproducts intended for some immediate practical use.  Excretions are a potential remanufacture of digestive byproducts intended for some future practical use.

Tue, 05/07/2013 - 10:13 | Link to Comment francis_sawyer
francis_sawyer's picture

Perfectly said... Thank you for sparing me from having to exit from my sardonic coccoon...

~~~

To put it another way... When I think about this [in aggregate]... It all just reminds me of the scene in Waterworld where the 'ATOLL PEOPLE' are about to toss Kevin Costner into the slime pit]...

Tue, 05/07/2013 - 07:48 | Link to Comment Sudden Debt
Sudden Debt's picture

I know, but I still need a certain grain to scoop up the shit from my ass and with silk I need like 200 meters of it.

With the double soft patch paper non moisterised I only need half a roll.

Tue, 05/07/2013 - 08:03 | Link to Comment Manthong
Manthong's picture

save the planet

new Fed policy initiative

Tue, 05/07/2013 - 07:56 | Link to Comment Fuh Querada
Fuh Querada's picture

does it float like 3 ply?

Tue, 05/07/2013 - 14:28 | Link to Comment thisandthat
thisandthat's picture

Big in Japan (or was, back in the 60s)...

Tue, 05/07/2013 - 07:48 | Link to Comment StychoKiller
StychoKiller's picture

After reading the prospectus on GLD/SLV, you'd have to be dain bramaged to buy into it/them!

Tue, 05/07/2013 - 08:17 | Link to Comment samcontrol
samcontrol's picture

f it's a party answering you guys.
What about the idiot that bought gld ten years ago and sold it a month ago...put the winnings in a hundred hectares. and just rebought at these lows?

Tue, 05/07/2013 - 08:21 | Link to Comment Bearwagon
Bearwagon's picture

I'll try to answer that: He would have made a shitload of money and gotten hundred hectares - but would still be an idiot.  ;-)

Tue, 05/07/2013 - 08:25 | Link to Comment negative rates
negative rates's picture

Yea, to hectare wit that.

Tue, 05/07/2013 - 11:07 | Link to Comment HungryPorkChop
HungryPorkChop's picture

Also, the taxes of SLV / GLD are much higher than regular stocks.  In the rare event you do make a profit be ready to hand most of that money back to the government. 

 

Tue, 05/07/2013 - 15:08 | Link to Comment samcontrol
samcontrol's picture

i,m offshore , don,t pay taxes dipshit.

Wed, 05/08/2013 - 13:56 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Thankfully those living & trading outside the legal reach of the IRS, never been a citizen of the USA, will not pay those taxes. Especially if you go beyond just GLD, SLV and use options for them in Canada - and dump it in a TFSA brokerage. Totally legal, recommended by government, no tax on the gains. None.

Tue, 05/07/2013 - 08:15 | Link to Comment samcontrol
samcontrol's picture

you are full if shit still, whipe better.

all words you are not whipping your ass with $100 dollar bills, at least yet.

Tue, 05/07/2013 - 07:56 | Link to Comment JustObserving
JustObserving's picture

Indians better keep buying gold.  Gold that was Rs 180 in 1965 is Rs 95,000 now - it is 528 times higher.  Gold that was $35 in 1965 is $1464 in US now  - it is 41.8 times higher.

According to the US BLS inflation calculator, $100 in 1965 is worth $739 today - only 7.39 times higher.

Tue, 05/07/2013 - 07:50 | Link to Comment spanish inquisition
spanish inquisition's picture

John Paulson - Are you questioning if you are in the club, or not?

Tue, 05/07/2013 - 07:52 | Link to Comment W T F II
W T F II's picture

"They" didn't clue him into the 'takedown', huh..?? He must have really pissed them off in the mortgage debacle..!!

Tue, 05/07/2013 - 09:38 | Link to Comment Downtoolong
Downtoolong's picture

Goldman's revenge for that $500+ million fine over Abacus.

Tue, 05/07/2013 - 07:52 | Link to Comment CheapBastard
CheapBastard's picture

My house is down 42% and my AAPL is down 40%......but who's counting....

Tue, 05/07/2013 - 08:33 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

No hedge fund managers were killed during the debacle.....but some did get their feelings hurt.

Tue, 05/07/2013 - 08:19 | Link to Comment samcontrol
samcontrol's picture

your apple is down 40 % because you bought at the worst possible time..
Shame inmarch 2009 it was cheap.

Tue, 05/07/2013 - 08:25 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

So was gold in 2002........didn't see you around then.

 

In other news.....Steve Jobs.....is still dead. Factor it in going forward.

Tue, 05/07/2013 - 08:36 | Link to Comment samcontrol
samcontrol's picture

ummm 2002.... i was 36 still running around Brazil getting laid every night.

I bought gld may2003.

Did not know this site existed until two years ago.
5 genuises
15 smart
40 very average
40 think Barcelona is in
Italy

Tue, 05/07/2013 - 08:42 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

In that case you're now in charge.....try not to screw it up.

Tue, 05/07/2013 - 08:51 | Link to Comment Jim B
Jim B's picture

I am getting killed in the HUI this year, but at least the Fiat I have in the bank is gaining soo much value, I can just feel it (/s).

Eventually, we all know how this plays out.  THe race to the bottom is the only thing saving the dollar.

Tue, 05/07/2013 - 10:15 | Link to Comment Papasmurf
Papasmurf's picture

My house is down 42% and my AAPL is down 40%......but who's counting....

The good news is your groceries have doubled!

Tue, 05/07/2013 - 07:53 | Link to Comment Fuh Querada
Fuh Querada's picture

So that's why Jim Ricktards is always referring to the "Paulson Puke" on his Twitter feed. Thanks Tylers for the clarification.

Tue, 05/07/2013 - 07:55 | Link to Comment Augustus
Augustus's picture

"The good news is that one levered players such as Paulson are finally blown out, there is hope that only far more rational, "non-weak handed" players remain at the table."

But, I thought it was only the Rational People who were buying gold in the first place.

Paulson may not have to liquidate because of leverage working against him.  It could be that the investors just want to have other management for the money.

Tue, 05/07/2013 - 08:05 | Link to Comment bullionbaron
bullionbaron's picture

While Paulson drops the ball, Eastern Central Banks will continue to accumulate: http://www.bullionbaron.com/2013/05/central-bank-activity-contrarian.html

Tue, 05/07/2013 - 08:12 | Link to Comment hungarianboy
hungarianboy's picture

Telling it for over a year now that Gold is done. It is most likeley that it will go down to 1200 or even lower.

Tue, 05/07/2013 - 08:15 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Right after Obama pays off the trillions in debt.....and lowers the oceans.

 

It could totally happen.

Tue, 05/07/2013 - 08:20 | Link to Comment samcontrol
samcontrol's picture

actually most of you agree with him on paper ets....

Like the premuim could go over 10% ,,ja.

Tue, 05/07/2013 - 08:18 | Link to Comment JustObserving
JustObserving's picture

How can gold be done if USA and Japan are printing more than the GDP of India every year?  Interest rates are record lows and the world is awash in fiat currency.

Debt in Western nations is unsustainable.  US debt and unfunded liabilities are $450,000 per citizen and rising at $26,000 per year. There is no way to avoid default or hyperinflation

 

Tue, 05/07/2013 - 08:21 | Link to Comment hungarianboy
hungarianboy's picture

Simple. Really simple. Gold is just an instrument to invest in. You don't pay with it at wallmart do you? Probably you could but paper money is what we use as standard. and as long as fiat currency exist, gold remains just an investment. Use technicals to trade not fundamental.

Tue, 05/07/2013 - 08:24 | Link to Comment Ghordius
Ghordius's picture

the West mostly agrees with you. the East... differs

Tue, 05/07/2013 - 08:54 | Link to Comment Fuh Querada
Tue, 05/07/2013 - 08:54 | Link to Comment tmosley
tmosley's picture

Right, because fundamentals never win out in the long term, and technicals totally work in an environment where money is being printed and funnelled into the markets by a select few.

Tue, 05/07/2013 - 09:25 | Link to Comment IdeasRbulletproof
IdeasRbulletproof's picture

Because you wouldn't want to hyperinflate for a third time right? By the way, I'm living in Hungary at the moment. I can tell you, the keynesians have taken over...

Tue, 05/07/2013 - 15:23 | Link to Comment auric1234
auric1234's picture

Gold is a store of value. You're not supposed to use it to pay with it at wallmart.

From your reasoning I assume you use FRNs as a store of value? Sorry to tell you, but you're being ripped off. FRNs are not a viable store of value, yet again you don't think of them as "instruments to invest in".

 

Wed, 05/08/2013 - 13:52 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Incorrect. Gold is a currency and you DO pay for things with gold. Right now the market for that is limited but in the past it was universal and will be again. This is a long repeating cycle. Fiat currencies without tangible backing just don't have lasting power. Gold & silver always take their rightful place as currency. At fair value this is far more expensive than today's cost in real energy, real work-hours to get gold & silver. It's not getting any cheaper. Only a fool would think gold will get cheaper instead of more expensive. You can choose to be that fool if it entertains you.

It might even entertain the rest of us

Tue, 05/07/2013 - 08:34 | Link to Comment W T F II
W T F II's picture

I'm thinkin' $723

Tue, 05/07/2013 - 10:16 | Link to Comment Jorgen
Jorgen's picture

My guess is it will flash crash to 666 for a nanosecond. You know, to make a point... /s

Wed, 05/08/2013 - 13:49 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Will be 2400 before you know it.

Tue, 05/07/2013 - 08:23 | Link to Comment samcontrol
samcontrol's picture

In patagonia where i live the debt is 8000 pesos per person, That is less than 1k .
We are surrounded by water and land.....making those self substainable here to , anyone interested?

Tue, 05/07/2013 - 08:30 | Link to Comment IdeasRbulletproof
IdeasRbulletproof's picture

"Oh no ...." - Bruce (Family Guy)

Tue, 05/07/2013 - 08:32 | Link to Comment W T F II
W T F II's picture

Looks like he's selling more today....!!!

Tue, 05/07/2013 - 08:34 | Link to Comment eddiebe
eddiebe's picture

I don't really give a shit about Paulson. I know I hurt, and fucking Ben is winning.

Tue, 05/07/2013 - 08:57 | Link to Comment More Lint than Coin
More Lint than Coin's picture

I love the headline, but shouldn't it read...."Paulson still has every ounce, but he missed out on a 27% FRN rally"?

And to point, if you save in base money.........isn't it still base money?

Tue, 05/07/2013 - 15:20 | Link to Comment auric1234
auric1234's picture

Very well put. It's not gold bear market, it's USD BULL. And against the fundamentals.

 

Tue, 05/07/2013 - 09:47 | Link to Comment Downtoolong
Downtoolong's picture

levered players

Ahh leverage, aka debt. Whether you’re a hedge fund manager or producer, that’s the real villain in all this. Gold’s major dip has little to do with supply and demand for gold and lots to do with leverage, margin, whatever you want to call it. It’s debt that forces people into the poor house, not quality assets they hold.

There was in interesting comment on another blog about the vice grip that banksters have on some marginal silver miners. The banksters loan miners money in a tolling type of agreement which pays the banksters back in product instead of dollars; in this case silver. This kind of arrangement is actually quite popular in many commodity producing operations such as oil, coal, nat gas, etc. The deal seems to insulate producers from risk of default on their loan. In reality, it exposes them to price swings in the futures market, which most of the contracts are indexed to, and which we all know the banksters manipulate. Using a simple example, when the day comes for the producer to make a loan payment, the banksters smack the futures market down so they either get more tonnage or less loan principal reduction in the payment. Through such arrangements a producer can actually be forced by the banksters into running an operation with all the profits going to the banksters. The producer is effectively enslaved by its debt agreement. If the producer is a nationalized company run by corrupt people taking kickbacks, the banksters and the company managers win at the expense of the citizens in the local population. And how many arrangements like this does it take to eff up an entire market? Just one on the margin, just one.          

 

 

 

Tue, 05/07/2013 - 09:51 | Link to Comment zipit
zipit's picture

When he throws in the towel (even better if it's forced) will be the mother of all gold buying opportunities.

Tue, 05/07/2013 - 15:17 | Link to Comment auric1234
auric1234's picture

If he's got shares of GLD, he doesn't have to sell them. He can redeem them for physical gold instead.

And judging from the ongoing plunge of GLD inventory (even as the price rises), something tells me which he might be doing so already. Along with many others.

 

Tue, 05/07/2013 - 10:23 | Link to Comment casaananda
casaananda's picture

I hope Paulson stands strong. But this year, for me, and many of us here, has been very painful, because we know the fundamentals remain strong for gold. And yet here we are, with wicked selloffs, and the stock market goes to the moon. I have never been so wrong so far.

Tue, 05/07/2013 - 10:36 | Link to Comment honestann
honestann's picture

Lesson 1:  Physical, not paper.
Lesson 2:  Physical, not margin.
Lesson 3:  Buy when manipulators strike!

Tue, 05/07/2013 - 12:49 | Link to Comment rp1
rp1's picture

The many less levered players will remain at the table, at a lower price.  It's called a bear market.  The only question is when the next bull market begins.  Betting on an upturn in commodities was a good bet in 1974 and 2009, and a terrible one in 1981.  Know your history and bet appropriately, if that's what you intend to do.

Tue, 05/07/2013 - 15:15 | Link to Comment auric1234
auric1234's picture

When you think about it, you're impliing the the USD is on a bull market.

That is, a currency on the verge of bankrupcy which the markets expect to go higher and higher.

Sounds like a bad joke.

 

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