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 | 3536934 GetZeeGold
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Quick pivot into silver......flash it back to problem.


Don't try this at home.

Tue, 05/07/2013 - 07:46 | 3536954 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?

Tue, 05/07/2013 - 07:48 | 3536962 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 | 3536983 GetZeeGold
GetZeeGold's picture



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

Tue, 05/07/2013 - 08:45 | 3537106 kliguy38
kliguy38's picture

its a toss up between the farts and the bitcoins

Tue, 05/07/2013 - 09:05 | 3537168 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...


Tue, 05/07/2013 - 09:58 | 3537359 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 | 3537392 Boris Alatovkrap
Boris Alatovkrap's picture


Tue, 05/07/2013 - 12:21 | 3537802 James_Cole
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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



Tue, 05/07/2013 - 12:36 | 3537835 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 | 3537903 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 | 3537981 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 | 3538211 James_Cole
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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 | 3538495 auric1234
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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 | 3538574 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 | 3538591 James_Cole
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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.

Not rocket science folks. 

Tue, 05/07/2013 - 22:21 | 3539685 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 | 3537600 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 | 3538475 auric1234
auric1234's picture

$85 premium in local shop around these parts.


Tue, 05/07/2013 - 08:04 | 3536992 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 @!!  This is what happens when you allow government to disarm you.  Also, fuck you Monsanto!!!!!

Tue, 05/07/2013 - 08:09 | 3537002 Sylvia Plath
Sylvia Plath's picture

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

Tue, 05/07/2013 - 08:44 | 3537101 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 | 3537119 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 | 3537139 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 | 3537532 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 | 3537614 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 | 3537962 francis_sawyer
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Dandelions make fine tea [& wine]... That's why I mentioned it...


STATIST JOKERS ~ all of 'em...

Tue, 05/07/2013 - 08:53 | 3537133 TeamDepends
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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 | 3537581 FeralSerf
FeralSerf's picture

You could move to Finland.

Tue, 05/07/2013 - 11:53 | 3537708 Going Loco
Going Loco's picture

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

Tue, 05/07/2013 - 08:13 | 3537014 samcontrol
samcontrol's picture

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

Tue, 05/07/2013 - 08:58 | 3537151 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 | 3537146 savagegoose
savagegoose's picture

msrket makers shouldnt bet on sentiment,

Tue, 05/07/2013 - 08:14 | 3537017 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 - 16:02 | 3538567 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 | 3536996 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 | 3537001 Charles Nelson ...
Charles Nelson Reilly's picture

That you Simon?

Tue, 05/07/2013 - 08:28 | 3537060 samcontrol
samcontrol's picture

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

Tue, 05/07/2013 - 08:27 | 3537057 samcontrol
samcontrol's picture

What??The house are containers , they are from Canada, you can move them....
We can use the trees as 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 | 3537069 samcontrol
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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 | 3537091 rayban
rayban's picture

I thought Ecuador was on the equator, not Uruguay.

Tue, 05/07/2013 - 08:51 | 3537128 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 | 3537134 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 - 10:07 | 3537381 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 | 3537247 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 | 3537385 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 | 3538590 mkkby
mkkby's picture

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

Tue, 05/07/2013 - 07:41 | 3536939 malikai
malikai's picture

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

Tue, 05/07/2013 - 07:45 | 3536949 francis_sawyer
francis_sawyer's picture

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

Tue, 05/07/2013 - 07:46 | 3536953 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 :)

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