Soros, PIMCO, Paulson, Texas Teacher Retirement Fund Buy Gold in Q1

Tyler Durden's picture

From GoldCore

Soros, PIMCO, Paulson, Texas Teacher Retirement Fund Buy Gold in Q1

Gold’s London AM fix this morning was USD 1,537.50, EUR 1,208.73, and GBP 966.31 per ounce. Yesterday's AM fix was USD 1,559.00, EUR 1,213.61 and GBP 969.95 per ounce.

Silver is trading at $27.33/oz, €21.59/oz and £17.24/oz. Platinum is trading at $1,427.50/oz, palladium at $592.60/oz and rhodium at $1,300/oz.

Gold fell $16.30 or 1.05% in New York yesterday and closed at $1,542.30/oz. Gold traded off in Asia hitting a low of $1,526.80/oz then recovered as the market opened in Europe and is now trading near $1,537.25. 


Cross Currency Table – (Bloomberg)

Support at $1,550 has been breached and gold is now testing support between $1,523/oz and $1,533/oz and below that is the psychological level of $1,500/oz.

Gold continued its drop this morning touching its lowest price level since December.  The huge uncertainty regarding the Greek political and economic situation is leading to heightened risk aversion and a preference for the sidelines of the dollar (by traders and hedge funds).

Many have liquidated leveraged positions and opted for the relative safety of cash due to falls in equity and commodity markets.

However, the uncertainty will be positive for gold as it is already leading to a pickup in physical demand in both western and especially Asian markets which has been moribund in recent weeks.

Greek leaders are meeting today in efforts to form an interim government that will take the country into its 2nd election within a short month period. The Greek president warned of "fear that could develop into panics" at its banks. Greeks are already withdrawing euros from banks, apparently for fear of rapid devaluation should the country leave the euro zone, according to minutes from president Karolos Papoulias' negotiations with political leaders.

The eurozone instability is hurting the euro – so far the beneficiaries have been the dollar and bonds. However, gold will likely soon benefit as more speculative players and weak hands have been washed out of the market and physical demand is picking up.

In India the wedding season has just begun and after the recent strike, there is much expected pent up demand in India.

Gold has dropped 1.9 percent in 2012 to $1,536.60 an ounce on the Comex in New York, and lost 20% since reaching a nominal record of $1,920/oz last year.


Gold in USD - 5 Years (Bloomberg)

After the Lehman collapse in September 2008, gold fell by less than other assets, roughly 30% from peak to trough, and then recovered the losses soon after (see chart above).

Gold has again been correlated with risk assets recently as it was in the aftermath of the Lehman collapse and contagion crisis but this correlation will again be seen as short term.

Prices climbed 6.7% in the first quarter but since March 30, gold has tumbled 8.1% and is poised for the biggest quarterly loss since 2004 (see chart below). 

This will be technically damaging but it is worth noting that gold recovered sharply from that quarterly loss in 2004 and the strong fundamentals of continuing institutional and central bank diversification into gold suggests the same may happen again in 2012 and into 2013.

Soros, PIMCO, Paulson, Texas Teacher Retirement Fund Buy Gold in Q1
Prudent money with an understanding of gold's long term diversification benefits continues to accumulate gold as seen in the latest SEC filings.

Billionaire investor George Soros significantly increased his shares in the SPDR Gold Trust in the first quarter. Soros Fund Management nearly quadrupled its investment in the largest exchange-traded gold fund (GLD) to 319,550 shares - compared with 85,450 shares at the end of the fourth quarter.

John Paulson maintained his large stake, the ETF’s largest stake and other large and respected institutional buyers were PIMCO and the Teacher Retirement System of Texas.

Paulson, 56, who became a billionaire in 2007 by betting against the U.S. subprime mortgage market, told clients in February that gold is a good long term investment, serving as protection against currency debasement, rising inflation and a possible breakup of the euro.

Eric Mindich’s Eton Park Capital also bought  739,117 shares in the SPDR Gold Trust during the first quarter. The New York-based fund held no shares of the exchange-traded product as of December 31.

Overall holdings in the SPDR Trust rose just over 8% in the first quarter, after a 2% gain in Q4 2011.

Global holdings in ETFs backed by bullion have seen slight declines in the last 3 months, the longest losing streak since 2004. Assets in the SPDR Gold Trust, the largest fund backed by bullion, reached at 1,309.92 metric tons on Aug. 8 and appear to be consolidating at these levels as were at 1,277.11 tons as of yesterday. 

Paulson has to date been the biggest holder of SPDR shares, using them to hedge currency exposure, while other managers such as David Einhorn and Daniel Loeb have favoured more discrete, more cost effective and safer option of owning physical gold bullion.

OTHER NEWS
(Bloomberg) -- Gold in Euros Falls to 1,204.84 An Ounce, Lowest Since Jan. 2
Gold fell to 1,204.84 euros an ounce by 7:57 a.m. in London, the lowest price since Jan. 2.

(Bloomberg) -- Gold-Silver Ratio Climbs to Highest Level in More Than 4 Months 
One ounce of gold bought as much as 56.0258 ounces of silver today, the most since January 9, according to Bloomberg data. The so-called ratio was at 55.9876 b 12:06 p.m. in Singapore.

(Bloomberg) -- Spot Gold Drops 20% From Record to Enter Bear-Market Territory
Immediate-delivery gold fell 20 percent from last year’s record, entering a so-called bear market. The price, which peaked last September at $1,921.15 an ounce, dropped 0.6 percent to $1,534.55 an ounce.


Gold in USD in 2004 – Showing Q2 Loss Prior to Gains in Q3 and Q4

(Bloomberg) -- India Sets Benchmark Import Price of Gold at $507 Per 10 Grams
India set the benchmark price for imports of gold at $507 per 10 grams, according to a statement from the finance ministry dated yesterday.

The benchmark price for imports of silver was set at $920 per kilogram.

The benchmark prices are used to set the tax on precious metal imports.

(Bloomberg) -- India Has No Plans to Further Raise Import Duty on Gold 
India, the world’s biggest importer of gold, has no plans to further increase the import duty on bullion, junior commerce minister Jyotiraditya Scindia said in reply to query in parliament today.

The government raised the duty to 4 percent from 2 percent effective from March 17, Scindia said.

(Reuters Global Gold Forum) – Indian Gold Demand - “Decent Volumes”
On the physical markets today, the drop in the rupee to record lows against the dollar has not deterred buying in India, where local dealers say the drop in the domestic price of gold to six-week lows has unleashed demand in "decent volumes", although the weakness of the currency is an issue, they say.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS
Gold hits new low on Greece turmoil - Reuters

Gold Seen Gaining as Plunge to Year-Low Spurs Investment - Bloomberg

Gold Eclipsed by Dollar Haven as Goldman Sees Rally - Bloomberg

Gold settles at 2012 low as dollar gains on Greece – Market Watch

COMMENTARY
Germany will blink, and won’t let Greece exit euro - MarketWatch

HSBC Securities's Steel on Gold Outlook - Bloomberg

The All-Important Question – Casey Research

What Will Happen to Greece and Gold? - GoldSeek

India's Temple Of Gold – Zero Hedge

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
tallen's picture

RSI is off the charts with gold. When will the short covering rally start!!?! Not to mention gold miners, soon you'll be able to buy them for free if they keep falling at this rate. Inverse parabolic moves end with..

GetZeeGold's picture

 

 

Welcome to the mind screw. Thanks for the cheap gold Ben Shalom!

 

Take QE2 cash and throw it at the commodities in prep for QE3.

 

Rinse and repeat as necessary.

 

Harlequin001's picture

So what happened to all these liquidating hedge funds driving the gold price down then?

Sounds like bullshit...

Didn't anyone ever tell these people that buying GLD is a short on the gold price?

The average Indian peasant has more economic savvy than these guys...

GetZeeGold's picture

 

 

Euro-land is sliding off a cliff. Is that bullshit too? Do you suppose Soros is buying gold to sell it for Euros?

 

I'll do what Soros is doing.....screw the stupid hedge-fund managers Do you run one? Are you smarter than Soros?

 

Harlequin001's picture

Not if he has any sense he isn't...

But then he isn't buying gold either is he?

He's buyig GLD, which is not the same...

'Do you run one? Are you smarter than Soros?' -

I can neither confirm nor deny that, but if I did I wouldn't be buying GLD; I would be buying bullion and storing it in a vault...

GetZeeGold's picture

 

 

Not if he has any sense he isn't...

 

I'll make sure and let him know you said that.

 

Harlequin001's picture

Let me know what he says will you? It's clearly very important to me...

GetZeeGold's picture

 

 

He said.......who?

 

Harlequin001's picture

So you don't know him then?

Beam Me Up Scotty's picture

"I can neither confirm nor deny that, but if I did I wouldn't be buying GLD; I would be buying bullion and storing it in a vault..."

Thats exactly what I was thinking.  Wait until Germany figures out the gold that is stored at the Fed in NY has about 100 different claims on it when they try and bring it home.  Its like fractional reserve gold.  If you have 100 ounces of gold, and sell it to 100 different people, you just made a whole lot of fiat.  If they decide they want to hold it, you better run for your life.

GetZeeGold's picture

 

 

How do say hypothecation in German?

 

Harlequin001's picture

'hypothecation in German...'

Danannnhhhh

Well you asked for that...

GetZeeGold's picture

 

 

Be honest.....do you really know German?

 

Harlequin001's picture

'If you have 100 ounces of gold, and sell it to 100 different people, you just made a whole lot of fiat.  If they decide they want to hold it, you better run for your life.'

Spot on. That's what happens when you buy GLD, to one extent or an other.

If you can sell the same share that's 100% supported by physical to 10 investors, the proceeds from the other 9 can be used to short...

If Soros had any sense, he'd buy physical...

Of course, if you only want to trade the gold price, and you have confidence in your counterparty risk...

PulauHantu29's picture

Agree. Added slv, gld, uso this morning.

Ben has his finger on the trigger under pressure from Barry and the Bank Cartel in election year.

Al Huxley's picture

Well, my all-long AAPL at-the-money calls strategy at the beginning of April didn't play out so well, but my 'Roubini trade' (short gold at the end of 2011 on his 'where's your $2000 gold now' tweet) was briefly in the money overnight, and he's sent out another of his analytical insights ('gold bugs are all hiding in their caves now') which makes me think its the perfect time to double down short on gold.  But what's REALLY caught my eye is DUST - the 3x gold miner bear fund!  Have a look - all it can do is go straight up!  At first I was just going to buy the fund, but then I realized the BIG money play is to buy short-dated OTM calls (maybe June 100s?)  I sure hope they're available, it looks like a lock!  10% /day - that'll be like $470 by option expiry in June! 

bania's picture

Palpatine buys gold. Good sign.

Gully Foyle's picture

Hey now I'm waiting for the negative Soros posts.

Or will the majority bitch out because the topic is Gold?

Either way good for a laugh, just to see the Philosophical conundrum which arises.

Should we praise Soros, or condemn him.

Cdad's picture

Evil people can also recognize the significance of gold during FUBAR times like this.

Ratscam's picture

deleted post, mea culpa

GetZeeGold's picture

 

 

Did you get a phone call from Soros too?

 

Gully Foyle's picture

Cdad

And our first player enters the game.

Now use your reasoning ability to make that fit with the previous claims that if Soros buys into something it is to make it fail. Or essentially to bet against anything Soros supports.

I understand you may have never been the one to say that, but many others have.

As I said a conundrum which should be entretaining.

tocointhephrase's picture

ETF? It has to be condemned in my books!

dannyboy's picture

Paulson buying gold.. FUCK

anarchitect's picture

No, Paulson and the others are buying paper (GLD). At least Kyle Bass had the good sense to take delivery on behalf of the University of Texas endowment fund. What's with these other clowns? I can understand individual investors buying GLD, but serious professionals? It's totally unbecoming.

GetZeeGold's picture

 

 

Paulson buying gold.. FUCK + you

 

There....fixed it for you.

 

LoneStarHog's picture

"Uncivilized" bitchezs

Cdad's picture

Come to Cdad precious metals.  Papa has been very very patient this time...and Papa needs his shiny stuff now.

Go ahead Wall Street...sell it down again one more time.

bigdumbnugly's picture

the prince of darkness is buying?   he must be having second thoughts about the 'bubble' that is gold once again.

i'd say the soros indicator trumps the contrary paulson one.

goldfreak's picture

but, but it's the ultimate asset bubble

vegas's picture

Congratulations, you are all now under water.

 

http://vegasxau.blogspot.com

mspgrandi's picture

Gold is exactly where it was last year....

Silver is 20% down....

 

You do the maths, not really the best investment

Harlequin001's picture

wait a minute,

"Gold is exactly where it was last year.... Silver is 20% down.... You do the maths, not really the best investment"

Let me guess, during the next rally it will be

"Gold is exactly where it was (3,5, 11 [insert whatever] days ago.... Silver is 20% down....  You do the maths, not really the best investment

Fuck off.

GetZeeGold's picture

 

 

Someone needs a glass of warm milk and a nappy.

 

LongSoupLine's picture

I'm not doing your math, idiot.

Tell Munger we said hi.

goldfreak's picture

were you doing the maths when gold was 30 % higher than the previous year and silver was up 50%.

we must have missed your post when you did that maths

JonNadler's picture

my gosh I can't get a decent troll in here.

Do the maths?

 

Do i have to bring Americaptriot here form Marketwatch to instill some fear into these retard goldbugs?

disabledvet's picture

Paulson was shorting the euro as well wasn't he? Anywho "what's gold prices in euros" mean? And with Hong Kong getting absolutely ANNIHILATED where exactly is all this liquidity everyone seems to be implying exists going to come from? HELLO! THE FED IS NOT FLOODING THE MARKET WITH MONEY MORONS! THEY'RE FLOODING THE MARKET WITH DEBT! I say INTEREST RATE RESET DEAD AHEAD...GREECE IS THE NORM.

fonzannoon's picture

I thought Paulson was short German bonds. Brutality.

bigwavedave's picture

i am long rice in chicken satay terms.

panda's picture

Q......E.....3.....

LongSoupLine's picture

Wow! GLD's laborers must be crazy busy stocking the vaults with physical to match all that paper...not.

Demand an audit!

Fuck this ponzi paper casino being labeled the "market"!

MFL8240's picture

 

Does not matter what the world is doing (example China, India, Mexico, Russia, et.al. buying huge amounts of Gold on this manipulated fraud of late) the Jewish gangsters by and through the Jewish cartel running the US money sham want Gold lower and will fuck with the American people as long as they can till they shake you out and into their worthless paper.  

 

WallowaMountainMan's picture

india's ratio gold/silver. 5070 kilogram gold/920 kilogram silver= 5.510

 

youngman's picture

I am flashbombed.....I am sitting here reading the economic news....and watching the EU fall apart...and the US getting into election year battles..and Japan dying...all to me are bullish for gold....its all paper we are talking about...and now we are talking about trillions...a number to big to fathom...they will never be paid back...and they will double from here in a short period of time...and gold and silver are down.....I just don´t get it.....is it that we are all day traders now....Groupon today...Apple tomorrow.....and treasuries as a "safe"haven.....you can´t fill the ATM´s in Greece fast enough today.....but all is good...and if i was on a Spanish bankers board....what would you be thinking....and doing....and the politicans that say they are for "growth" not austarity.....well no shit...but growth is hard work....its 16 hour days...its ideas..its materials....its manufacturing..its production...its market driven....production equal sales...The EU and the USA will never be there again....our regulations, laws, rules, lawyers have killed that....so I am sitting on the sidelines(in Colombia) watching the western world lie and cheat itself to death....Facebook will be know in the future as the twig that broke the camels back....that offering is so full of lies and hype.....but billions will change hands...but it is just a plaything...a toy....and that is what the western world will lay its hat on...I am pissed off today to watch the power that be do nothing....talk ..talk...talk...but no one is making the hard ..tough decisions to make things right...and on the other side..the people are such babies now that they do not want any hard decisions either...they will come to both sides...and many people will not survive the fiasco that follows...and it could have been saved....if not mitigated with some tough decisions...cuts...cuts in spending...cuts in costs...cuts in everything....instead Jerry Brown gives raises to all the California employees to name an example.....back to the bar.....its my "safe haven"...lol