Horrible News For Goldbugs - Paulson Is Bullish On Gold Again; Next - Roubini?
We wish we had good news, but we are not going to lie: This is the worst possible news for any gold bull out there.
From Bloomberg:
Gold traders are getting more bullish after billionaire hedge-fund manager John Paulson told investors it’s time to buy the metal as protection against inflation caused by government spending.
“By the time inflation becomes evident, gold will probably have moved, which implies that now is the time to build a position in gold,” New-York based Paulson said in a letter to investors obtained by Bloomberg. Armel Leslie, a spokesman for Paulson, declined to comment.
The 56-year-old manager’s SPDR Gold Trust holdings fell 15 percent in the fourth quarter as his $23 billion hedge fund company had its worst-ever year. His Advantage Plus Fund lost 51 percent in 2011, and the firm said in a third-quarter letter that financial services companies were the “primary drag.” Paulson became a billionaire in 2007 by betting against the U.S. subprime mortgage market. Gold rose 10 percent last year in New York trading, an 11th consecutive annual gain.
And so the Paulson overhang is back. Couldn't Paulson just go ahead and buy Bank of America or some other worthless biohazard again?All that remains is for Roubini to say he prefers gold over spam (and always has, he was merely "misunderstood") and the crash will be imminent.
Or perhaps we will learn following the next $1000 up move in gold that Gartman will have been long gold in Vietnamese Dong.
Well, at least cheap entry points will be available.
(12 votes)
»
- Login or register to post comments
- 20179 reads
- Printer-friendly version
- Send to friend
Well, at least he's "transparent."
This is troubling. But, luckily I bought the bulk of mine a long time ago.
There is always the 'broken clock' theory with him. Best I can hope for.
Roger that,Roger!
"What's your vector Victor?"
"Give me a clearance, Clarence..."
Better chance of Gartman having a Long Gold Vietnamese Dong some where else!
It just dawned on me how this will play out and, as weird as the world has been getting, it makes perfect sense. Paulson, now bullish on gold, will be simultaneously proven correct and have his biggest loss yet.
How will this happen? While his call on gold will be correct, his investment will be in GLD. He's not buying metal, he's buying promises. His assumption that the system will continue to function normally has blinded him to the actual underlying reason that gold is a good investment: it is real.
The value of GLD depends upon the integrity of a chain of promises, and the breaking of any of these promises puts the value of GLD at risk. Gold, on the other hand, doesn't depend upon the promises of anyone, nor does it depend upon the integrity of anyone other than an assayer. In fact, being long physical gold is like shorting the honesty and integrity of Wall Street, the Federal Reserve, the City of London, and Vichy DC.
Paulson will lose his ass when the prices of gold and GLD decouple. Gold will skyrocket, and Paulson will be stuck holding unredeemable paper promises backed by vaporized gold.
+ 1
Very good!
FOFOA-like even...
fofoa.blogspot.com
Well, for now GLD vs spot gold shows:
http://stockcharts.com/h-sc/ui?s=$GOLD&p=W&yr=2&mn=11&dy=0&id=p99096604499
a pretty accurate overlay. Ratio shows:
http://stockcharts.com/h-sc/ui?s=$GOLD:gld&p=W&yr=2&mn=11&dy=0&id=p99096604499
steady 10.28 to 10.3x GLD = gold spot
so while I fully expect GLD one day to fail while gold spot (real physical) goes up...
http://comparegoldprices.com/
for the time being I expect that if gold makes big swings up or down then options on GLD will still return big. IN particular I'd say a GLD call more than 100 days out or a GLD strangle 60 to 90 days out ought to do OK. What harm can it do to put in 1 to 3 contracts each in that position... just to see how it turns out.
http://flic.kr/p/bpJpXX future projection model for gold spot
Ever seen a grown man nekkid?
shirley you can't be serious?
I'll be more nervous when Robot Trader finally goes long.
He never "goes" anything, he'll just claim he was long all along.
Long Dong.....Vietnamese of course.
"Dong ? No dong. We trade in ROK won, exclusively."
Bang Dae-Ho, CFA
"No mowr yankee on my wanky..." - Long Duck Dong
Wha? huh?
Ha ha! + another one for the Turd!
And I'll be worried about what's happening at Megiddo when Nadler finally gets bullish...
you know....gold doesn't look so bad right now......., he he, nah just teasing you boys
Gold to 300 by year end!!!!
Aren't I right Akak?
I thought it would be down to $5.00 or so, you know, the cost of getting it out of the ground.
Did Johnny Bravo ever finish college?
stop calling me Shirley, and we're on instruments
Of course I'm serious... and stop calling me Shirley
I picked the wrong day to stop sniffin glue
I am serious and dont call me shirley !
Yes, I am serious. and don't call me shirley. John P would be good. or Mabel
I haven't felt this sick since the Anita Bryant concert...
Oh yes he is... and stop calling him Shirley!
Even a blind sow can find an acorn once in awhile.
a best friend's mother-in-law makes $73 hourly on the computer. She has been laid off for 6 months but last month her income was $14399 just working on the computer for a few hours. Go to this web site and read more .... LazyCash9.com
Gold is the new appl 2's and 20 baby!
ARRRGghhhhhh me gold dubloons just got a curse from Davey Jones hisself!
Not the Hedges very own Davey Jones! Say it ain't so!
</sarc>
Soros is selling his gold!
I thought he sold it last year...
to his left hand
It was an arm's length transaction
Lol
Short gold, go long dong silver.
get up and go, got up and went.....
No one even dares to believe that he could be on the right track.....after knowing his short term track record. But: could he be correct?
Someone needs to pass the memo to Paulson that gold isn't "backed" by anything...
that's the signal to go long USD.Yes I know it's shit, but it's (for now at least) the best horse in the glue factory.
... the tallest midget
"the leper with the most fingers..." (thanks Max Keiser)
or...the floater as everything else goes down the toilet first...
The hooker with crabs, rather than AIDS.
BTFD!
UGHHHHH. Unless.... He's realised that everyone on ZH does the oppopsite of what he says hence time to reverse trading strategy. BUY BUY BUY
Hmm, is it time to abandon ZH? You know it couldn't last.
Just set my stops.
I'm pretty sure the flock will be able to put a positive spin on this.
I like the part where they show you the 1 hour chart and scream bubble after the fixing.
go for arts
Look how complacent this market is. Greece..who gives a shit. Oil....who gives a shit....
I thought Paulson only sold his GLD so he could buy physical. I guess that is not true?
Barbarian!
Someone got hungry for Au-crunchies! :>D
Seeing Paulson's failures, whoever behaves as if he or she knows what they are doing, including some ass braggers on this blogg, should be ashamed of themselves.
Suggestion: Go for a colonoscopy.
This is GREAT news! My acquisition rate is headed up.
i dont think he ever stopped being bulllish. he just was thinking 2 steps ahead and market was at 1 step ahead and he had margin calls
Does that mean that everything I have been reading here was wrong and the only reason why I should buy gold was that Paulson was selling his? I thought that gold was good for the exact reason explained by Paulson today.
Tongue and cheek my man. When asset prices roll over gold will go with it, for a time anyway. Maybe he's calling the top in the equity market?
CRAP! I'm selling it all for Apple stock.
Only the best investors waited for it to get over 500 before buying because that's like a milestone that proves it's going up.
Every dog has its day.
This might be bad news for gold, in the short term anyway. When everybody is becomes bullish on gold, or anything else, it's probably time to step back and reasses your next moves.
Either way, I'm long silver since I bought all of mine at $12-15/oz back in the '07-'08 era. I'm too poor for gold.
I wish I bought more back when... But I guess we can expect a correction now, can´t we?
Sure! Expect a correction, in anything but stocks from here on out.
Is it ok to say
"Fuck Gold & Silver"
O_0
Not around here. You'll have down-votes before you can say "holy phizzical Batman!"
just for this post Blu :)
Yes....but it's a bit like wearing and eye-patch on the public rail system...
You may wake up in a road-side ditch.
Don't wake up in a road-side ditch....keep some gold and silver in your portfolio
don't have a grandchild with a dog collar...
double good!
Q: Is it ok to say "Fuck Gold & Silver"
A: As long as you follow proper Fight Club etiquette and say "Fuck Gold & Silver," bitchez.
Shit! Fuck!
Gold induced Tourette's Syndrome?
Well then I am off to the sushi bar for a ceremonial dram of sake before committing ritual sepuku in the center of the nearest intersection.
Just kidding. I'm going on a bike ride.
don't drink & ride...
Go ahead, you have 0.0 liability.
He will buy his gold...but his investments in Greeceor whatever will fall flat...so he will have to sell again to cover his loses
"Gold is a bubble....and the bull market in gold is over" -Larry Kudlow
He never really did quite understand the true meaning of a "GOLD-i-locks" economy, did he?
Hey, Paulson merely got a brainwave. Every idiot has his good moments.
Even a blind squirrel catches a nut sometimes.
only 'cause they're easier for the cats to catch
Correction ahead or perhaps demise of the paper market. Things do seem to be progressing nicely.
This COULD be the one time he is right.
After all, it means even Paulson is now giving up on the Ponzi. And my guess is he knows a person or two with some insight into how close we might be.....
I will get scared when he buys real bullion and takes posession of the metal.
How do we know that he has not bought physical?