Ray Dalio Goes On Gold Buying Spree, Adds 575% To GLD Holdings, Becomes 8th Largest Holder

Tyler Durden's picture

Until last quarter, the world's biggest hedge fund had, curiously, never held a position (according to our records) in any of the most liquid gold ETFs, whether the SPDR Gold Trust, the GLD, or the iShares Gold Trust, the IAU. That changed in the second quarter of 2017, when Bridgewater made its first tentative purchases in the gold ETF space, buying up 577,264 GLD shares, for $68.1 million, as well as 3.1 million IAU shares worth $36.8 million.

That was just the beginning, because as readers will recall, back on August 10 Ray Dalio urged investors to buy gold in case "things go badly." This is what Dalio said:

When it comes to assessing political matters (especially global geopolitics like the North Korea matter), we are very humble. We know that we don't have a unique insight that we'd choose to bet on. We can also say that if the above things go badly, it would seem that gold (more than other safe haven assets like the dollar, yen and treasuries) would benefit, so if you don't have 5-10% of your assets in gold as a hedge, we'd suggest you relook at this. Don't let traditional biases, rather than an excellent analysis, stand in the way of you doing this.

And that's also what he did, because in the third quarter Bridgewater was very busy buying gold: in fact, according to the just released 13F, after $3.8BN and $2.9BN positions in EM ETFs VWO and EEM, as well as a $1.3BN position in the SPY ETF, Bridgewater's 4th largest position as of September 30 was GLD, with 3.894 million shares, worth $473 million. In other words, in Q3, Ray Dalio went on a gold buying spree, increasing his GLD holdings by a whopping 575%.

As a result of the surge in holdings, Bridgewater as of this moment, the 8th largest holder of paper gold, known as GLD.

It wasn't only GLD, however, because Bridgewater also nearly tripled its IAU holdings, increasing its paper iShares gold holdings by 266%, from 3.1 million shares to 11.3 million.

And now that Ray Dalio is rapidly buying up GLD, IAU and other gold holdings, we wonder how long before the momentum chasers send gold, both paper and physical surging, and whether this shift in momentum could potentially impact the ongoing surge in bitcoin.

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DinduNuffin's picture

ray talkin his book again

38BWD22's picture

 

 

If Ray were really smart, he'd be buying physical gold.  Even if he would have to pay a bit extra to have it stored securely.

Of course, one does not have to buy into his hedge fund...  One can just buy gold oneself.

Beam Me Up Scotty's picture

Exactly.  GLD is paper, not Gold. 

NugginFuts's picture

Maybe he meant Bitcoin Gold      /sarc

Arnold's picture

As a large holder he may be able to take partial physical delivery.
As a peanut holder, I could not, and left GLD without the door hitting me in the ass.

ParkAveFlasher's picture

"That's why I'm richer than you."  - Jaime Dimon

Escrava Isaura's picture

I guess Dalio missed the Hope & Change, pardon me, Make America Great Again.

Dalio, if you’re not investing and if you don’t believe in MAGA you’re left with only two choices,

1) Buy 33% physical gold. Buy 33% silver. And 34% cash. All these need to be small properties, meaning in the case of cash, bills no larger than $20 dollars.

If you can’t accomplish that, here’s your:

2) Return the money and go get a real job.

 

NoCamelCase's picture

yeah sure, 33% silver and $20 dollars stockpile. and a big truck and crane to move it :) lol

dark fiber's picture

As a large holder he is guaranteed to get fuck all.  Because nobody is getting anything once the issuer defaults.

Arnold's picture

Much the reason for getting gone.
A great deal more issuance than Physical.
I can go play with Comex with the same knowledge.

DeadFred's picture

Paper gold doesn't need storage and insurance (other than the put options that pay off if the thing is proven to be a scam. 10 cents per $120 keeps your paper investment paper safe for a year.

strannick's picture

Gold buying?

Or GLD buying..

That "O" makes a world of difference

shitshitshit's picture

is he a proxy used to hammer the prices when gold bugs are about to come all over themselves?

I'd love to get some financial insight on his whereabouts.

chiswickcat's picture

GLD, here today, 'poof' gone tomorrow. Got phys?

yogibear's picture

LOL, several hundred paper ounce to 1 physical gold ounce.

yogibear's picture

LOL, several hundred paper ounce to 1 physical gold ounce.

Omen IV's picture

Dalio said Comey had integrity - his opinion means nothing now

any_mouse's picture

Assange and Snowden both said Comey was going to find the Truth and Trump was wrong to fire Comey.

What's your opinion on Assange and Snowden?

chiswickcat's picture

Assange and Snowden both said Trump was wrong to fire Comey?? Link please. 'wrong to fire someone' is not the sort of judgement Assange makes.

bardot63's picture

Dalio bought paper gold.  He wouldn't know what a Saint Gaudens, a $50 Buffalo or a 10 ounce Pamp looks like.

Justin Case's picture

He knows how many zeros there are in a billion tho.

debtor of last resort's picture

His fund bought paper. Ray buys phyz because he’s an ordinary guy like you and me. He ain’t stupid either.

anarchitect's picture

Kyle Bass took delivery from the Comex for the U of T endowment for which he is a fiduciary.  Ray isn't too bright, because the concerns about GLD have been widely disseminated.  He should take delivery.  But he's not a GLD "authorized participant" (bullion bank), so they'd probably tell him to take a hike.  He might have to go to the Comex or LBMA for his 11+ tonnes.  He also needs to store it outside the banking system.

vofreason's picture

I don't know why digital gold backed by a legit holding vault hasn't caught on more.  It seems it could replace all third world currencies in an instant and gain popularity quickly to end the printing.  I mean the only problem with gold is using it to pay for things in practical terms.

That said all you haters on GLD are just silly "doomsday" prepper imbiciles.  I own physical, sure, but for GLD to be worthless we need what?  A nuclear war?  Zombies?.....it's just such a ridiculously small chance and not worth consideration.  If any plausable crisis happens it would happen quickly and you'd be able to sell, it's not like the dollar will go extinct overnight.  And if it takes a long time then there's no reason to think GLD won't be tradeable. 

I'm fully in the Gold camp and don't like the shenanigans either but someone lay out a plausible scenario worth worrying about where all finacnial markets aren't trading and the government just says "sorry, everything is worthless but real gold, we aren't turning the machines back on and we are creating a new currency, the old one is worthless too"......because that's what it would take.  Even with helicopter money,-5% rates, and massive real inflation GLD would still exist and trade higher with physical.  If you think zombies are coming and you're going to be King Neegan because you have $50,000 of gold bars and some ammo you have the mentality of a child.  Most of you here in that camp seem to be over 50, obese and don't have a chance to hold your assets in that scenario........they WILL pry it from your cold dead hands.......stop stacking silver and start runnning a mile a day if you're truly worried.  

Rainman's picture

nothing in the world safer than paper gold                 /s

syzygysus's picture

Ray Dalio goes on Paper (Gold) Buying Spree.

 

There, fixed it for you.

wcvarones's picture

Because buying physical bars in a vault is too hard!

DeadFred's picture

Paper gold is pretty much as safe as the physical gold you are storing in someone else's vault. Store it yourself or buy paper.

Bam_Man's picture

He's no dummy.

He sees a global sovereign debt/currency crisis rapidly approaching.

The stock market is where it is because it also sees a global sovereign debt/currency crisis rapidly approaching.

Gold, for some reason does not. Yet.

But it most certainly will. And soon.

Bendromeda Strain's picture

I'll tell you what he's not seeing... GOLD.

ReturnOfDaMac's picture

He got ripped.  The article said he bought shiny, was wondering where he was going to store that much precious.  It turns out he bought dull paper promises that will never be called on to deliver.  Paper buying more paper, see this on the crimex every day.  Pfffft, nothing burger.

pitz's picture

GLD?  Really?  Nobody with any brains actually buys that.  

Bam_Man's picture

If you buy enough, you can demand delivery. Maybe that's his plan.

Clock Crasher's picture

Maybe you should'nt hog the crack rock. 

RAT005's picture

It would be exciting. Anyone trying to get delivery of less than $100K gets told to go pound sand.  He could demand delivery of some 10% of his GLD holdings but what would the remaining 90% when GLD is outed as a rehypothicating scam.  GLD doesn't have the gold.  It's a scam to keep money out of actual physical dreamed up by TPTB.  If only he would ask for some delivery!!!!!!

Clock Crasher's picture

Yes but the next time he stepped into a car he would be mangled in a fiery wreck before burning to death inside. 

HominyTwin's picture

Very funny, but the CBs don't need to murder anyone to suppress gold. They just ctrl-p and sell more contracts, pressuring the price.

Bendromeda Strain's picture

What is the largest redemption to physical you can point to? Is that just prospectus fluff for the muppets?

chiswickcat's picture

'can demand delivery'? hah ha. read the small print. 'if we cant deliver we can pay you in currency what we feel the average gold price was that day' or words to that effect. Even Bullion Vault has that clause.