Great news for those of us on the Jacksonian Sound Money Bus. Mega -“Correctumundo” mortgage backed bond-shorting hedgie John Paulson of Paulson & Co. has been piling into gold and gold miners in the first quarter of the year. Propitious for us, no?
From the Bloomberg article:
May 15 (Bloomberg) — Paulson & Co., the hedge-fund firm run by billionaire John Paulson, increased its investment in gold and gold-mining shares in the first quarter, according to a regulatory filing.
As of the end of the first quarter, Paulson was the largest holder of SPDR Gold Trust [[GLD]], an investment fund that buys gold bullion. The New York-based firm owned 8.7 percent of the fund, valued at $2.8 billion as of March 31, according to a filing with the U.S. Securities and Exchange Commission.
That position was established as a hedge, the company said in a statement, because its funds have a share class that is denominated in gold rather than in dollars or euros.
Paulson bought or added to several gold companies in the quarter as well. He purchased a 15 percent stake in Market Vectors Gold Miners ETF [[GDX]], a fund that mirrors the move in the Amex Gold Miners Index. That stake was worth $638 million at the end of the quarter.
Paulson also bought a 2.6 percent of Gold Fields Ltd. [[GFI]], becoming the fourth-largest holder of the Johannesburg-based gold miner.
The investment firm, which manages $26 billion, also bought an additional 2.4 million shares of Kinross Gold Corp [[KGC]]. Paulson owned 4.4 percent of the Toronto-based gold producer and was its third-largest holder at the end of the quarter.
Paulson reported owning an 11.3 percent stake in AngloGold Ashanti Ltd. [[AU]], also based in Johannesburg, in March.
Rejoice Jacksonians, you are in the company of “the smartest guys in the room” since 2005.
A hat tip to my friend and fellow Precious aficionado Gary Savage at The Smart Money Trader for sending me the good news.
Ciao for now.
Updated translation of the above for my hardened Gaelic friends: Latha math dhut!
26 Responses to Jacksonians Gain a Formidable Ally
No real Irishman would ever mutter the words “Ciao.”
What would you know about real Irishmen, hybrid boy?
But just for you, there, “Michael Collins,” I updated the sign off.
So…what happens when he decides to take off his hedges?
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At that point I will be counting coin, as it will only be when every piker that’s been holding out for years will be buying gold hand over fist.
After all, it is a bull market, m’boy.
Looks like Sahib Bilderberg’s stealth overnight buying on the Indian Exchange is working out exactly to plan and is goosing our own futes here in the States.
Crafty guy, that Bilderberg.
PPT fave (and Jake non-Jacksonian speculation) QSII is BTFO.
Lot of short pain there.
Another non-Jacksonian Jake Speculation — SONS (of bitches) breaking the fupa out.
Also, CaveManian Fluicide pick SVA up 9% in recent trading.
Flu in Japan and UK stories over the weekend.
Noticed SVA moving this morning. Nice since I never bailed on it even though I had planned to.
If you are looking at an entry for MON this morning, it should break this bullish wedge at about $90.20 or so… that would be the low risk play.
THE ORIGIN OF WORDS (from the Dangerous Book for Boys)
One of the many Hindi words adopted into English (like ‘pajamas’ and ‘bunglalow’).
The ‘Thugs’ were a sect of robbers and murderers in India.
Yes, the actual (Urdu?) word was “Thugi.”
Very big in the history of the Raj.
Yeah, in the Indian version of ‘Starsky & Hutch’, i loved
the edginess of the character, Thugi Bear.
MON beginng to get jiggy with it.
Approaching the upper channel line on this (temporary) bullish downwedge.
I look for it to break here, but wait for it… waaaiiiit for it ($90.20-ish).
Urdu is often contrasted with Hindi, another standardised form of Hindustani. The main differences between the two are that Standard Urdu is conventionally written in Nastaliq calligraphy style of the Perso-Arabic script and draws vocabulary more heavily from Persian and Arabic than Hindi, while Standard Hindi is conventionally written in Devanāgarī and draws vocabulary from Sanskrit comparatively more heavily.
Most linguists nonetheless consider Urdu and Hindi to be two standardized forms of the same language; however, others classify them separately due to sociolinguistic differences.
MON over the $90.20 hurdle, as expected. Even retested that line a minute ago.
Good to go, imho.
Also, Jacksonian breakout TC is looking good on this pullback (@$8.00).
It’s always refreshing to have Mr. Wikipedia stop by for a chat.
JakeGint, what short-term target do you have for MON on this move? thx
JJ — I think short term it heads to the 38% retrace line of $96.
This is a long term hold for me.
LOL, that’s gold.
I think I know that guy, btw.
Thugi Bear reminds me of Rajah from ‘Bachelor Party’.
(yes, that cinematic classic starring tom hanks)
Gary: Are you the pimp?
Gary: You look like Gandhi!
Rajah: I’ve got girls to sit on your face.
Rajah: I’m looking for this dung-head who took my women! He is being liar to me! I want my bitches back!
[Crossbow dart flies across the room and strikes the wall next to Rajah]
Rajah: Holy shit! I’m going to get Milt. Right now. I’m going to get the fuck out of here.
How the hell do you remember Bachelor Party?
Well, with acting that good, it’s tough to forget.