World’s Largest Hedge Fund Bridgewater Buys $68 Million of Gold ETF

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World’s Largest Hedge Fund Bridgewater Buys $68 Million of Gold ETF

 - World’s largest hedge fund Bridgewater buys $68 million of gold ETF in Q2
- Investors poured $870 million into SPDR Gold in Q2

- Billionaire Paulson keeps 4.36 million shares in SPDR Gold
“Risks are now rising and do not appear appropriately priced in” warns Dalio on Linkedin
- Investors should avoid ETFs and paper gold and own physical gold
- Given negative interest rates, companies should consider allocating some of corporate deposits to physical gold as done by Munich Re

From Bloomberg:

Hedge-fund managers including billionaire John Paulson are being rewarded as investor worries over everything from uneven economic data to U.S.-North Korean tensions fuel a rally in bullion.

At the end of June, Paulson & Co. owned 4.36 million shares of SPDR Gold Shares, a U.S. government filing showed Monday. That’s unchanged from the three months through March. Bridgewater Associates, the world’s largest hedge fund, added the ETF to its portfolio in the quarter, with the purchase of 577,264 shares valued at $68.1 million, a regulatory filing showed Aug. 10. Templeton Global Advisors Ltd. boosted its stake in Barrick Gold Corp.

Investors poured $870 million into SPDR Gold in the second quarter, taking the fund’s total assets to $34 billion as U.S. inflation continued to undershoot the Federal Reserve’s target, putting at risk policy makers’ projection for rising interest rates. While the prospect of monetary policy tightening remains, investors recently turned their focus on geopolitical strains as North Korea’s Kim Jong Un threatened the U.S. territory of Guam, boosting demand for bullion as a haven.

“Prospective risks are now rising and do not appear appropriately priced in,” billionaire Ray Dalio, who manages Bridgewater, said in a LinkedIn post, as he recommended investors allocate 5 percent to 10 percent of their assets to gold.

Dalio also flagged rising odds that the U.S. Congress may fail to raise the debt ceiling, “leading to a technical default, a temporary government shutdown, and increased loss of faith in the effectiveness of our political system.”

 Full article on Bloomberg here


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News and Commentary

Gold falls on easing North Korea tensions, strong U.S. data (Reuters.com)

Gold prices inch up ahead of minutes from latest Fed meeting (Reuters.com)

Asian Shares Mixed, Korea Advances as Calm Returns (Bloomberg.com)

UK car lenders vulnerable after surge in risky loans - BoE (IrishTimes.com)

‘Deep’ Subprime Car Loans Hit Crisis-Era Milestone (Bloomberg.com)

Bank of America Warns of an ‘Ominous’ Sign for Stocks (Bloomberg.com)

Investors should be looking at gold (Barrons.com)

UK debt tide is rising – how can you avoid drowning? (TheGuardian.com)

Prepare for negative interest rates in the next recession - Rogoff (Telegraph.co.uk)

US dollar's fall could become a self-fulfilling prophecy (SCMP.com)

Own a few bitcoin but realise it is speculation (StansBerryChurcHouse.com)

Gold Prices (LBMA AM)

16 Aug: USD 1,270.15, GBP 985.13 & EUR 1,082.29 per ounce
15 Aug: USD 1,274.60, GBP 986.92 & EUR 1,084.05 per ounce
14 Aug: USD 1,281.10, GBP 987.34 & EUR 1,085.48 per ounce
11 Aug: USD 1,288.30, GBP 993.67 & EUR 1,096.47 per ounce
10 Aug: USD 1,278.90, GBP 985.39 & EUR 1,091.67 per ounce
09 Aug: USD 1,267.95, GBP 974.80 & EUR 1,079.79 per ounce
08 Aug: USD 1,261.45, GBP 967.78 & EUR 1,068.20 per ounce

Silver Prices (LBMA)

16 Aug: USD 16.68, GBP 12.96 & EUR 14.25 per ounce
15 Aug: USD 16.89, GBP 13.12 & EUR 14.38 per ounce
14 Aug: USD 16.97, GBP 13.09 & EUR 14.39 per ounce
11 Aug: USD 17.09, GBP 13.18 & EUR 14.53 per ounce
10 Aug: USD 17.08, GBP 13.14 & EUR 14.57 per ounce
09 Aug: USD 16.59, GBP 12.76 & EUR 14.14 per ounce
08 Aug: USD 16.39, GBP 12.57 & EUR 13.87 per ounce


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Silver Savior's picture

So if investing in ETFs is not investing in gold then they bought nothing? lol congrats. A one gram physical gold slab has more merit.

bluskyes's picture

Aaah, GLD. All the counterparty risk of stock, without the cash flow. The downside of both asset classes.

jlmac's picture

I love seeing the establishment buying into manipulated investments.   It's paper not gold   Rather my Bitcoin cashout at 100 percent gain for one month worked magnificently.   Butcoin, stinkcoin, scam of the century, blah blah blah.   Thankyou.

Greenspazm's picture

$68 MM? That's just a handful of buttcoin.

RDouglas's picture

A couple years ago I was selling stawks to buy gold. Today I am selling stawks to buy lead....... times change.

jlmac's picture

You poor thing.   My sympathies.

Conax's picture

Paper gold?  That ain't gold, that's IOUs.

No story. They might as well buy moar stawks. 

MrSteve's picture

Clearly just a short term scalping on their part as no one goes all in on being an unsecured creditor in a operation where they don't audit their rented warehouses. All this from the prospectus for GLD which just whispers -- get out now-- ---- now.

idontcare's picture

GLD?  If everything were to go to shit, good luck collecting on that one.

 

[If you don't have "it" in your hands, you don't own it!]

ReturnOfDaMac's picture

Don't be getting fingerprints on their rocks ...

ReturnOfDaMac's picture

Short rocks buy stawks!  Just a headfake ...

Anarchyteez's picture

Can we get past $1,300 this time?

Or are they going to destroy it again and do massive technical damage?

silverer's picture

They're running out of room for their paper.

ReturnOfDaMac's picture

I smell monkeys and see hammers ...

BobBercy's picture

68m for a fund that runs over 150bn doesn't sound like a very high conviction bet to me!

GunnerySgtHartman's picture

Interesting that they're buying an ETF rather than physical.

fuckstar's picture

China told them to set the price at the designated time. Thats what GLD is for.. That is what GLD does.

Yukon Cornholius's picture

They can't buy physical. There was an interview with a hf manager who said legally they couldn't purchase phizz.

silverer's picture

Sounds like a BS line to me. I watched a show where the guy is tasked to do just that for his customers. His name is Rob Kirby, and goes out and finds the big stocks available for purchase. Basically, he states it's getting very hard to find physical gold in large quantities. Like if you want to buy 200 kilos or more. The truth is, it may be too hard to find real gold that's available to purchase that's not tied up or leased, backing the paper.

GunnerySgtHartman's picture

The government prohibits hedgies from owning physical?  Interesting, did not know that.  Thank you!

herbivore's picture

I don't think there's a regulatory requirement that they disclose their personal physical gold holdings. MY guess is they have quite massive amounts of physical gold socked away, outside the U.S.  My guess is they're VERY prepared for the worst.

Bay of Pigs's picture

It's becauae they are part of the problem perpetuating the fraud and corruption that is Wall Street.

Paper humpers with no ethics, morals or conviction to tell the truth.

1.21 jigawatts's picture

Digital Beanie Babies.  Oh, there's a paper version too

if you really like the feel of it in your hands, Goyim.