Gold's Biggest Bull Gets Taken to Cleaners in December (GLD)
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Flip on CNBC or Fox News, and chances are very good that you'll be bombarded with ads hocking gold at "discount prices," and it should be a "foundation of your portfolio." It's those commercials that probably twist the knife a little more in John Paulson.
The founder and manager of Paulson & Co. made his mark when the housing bubble burst in 2008, but has notably been suffering through a tough 2011. One more straw is gold.
Paulson has been one of the largest investors in the SPDR Gold Trust ETF (NYSE: GLD), at least through the third quarter. The ETF was actually up 23 percent through November.
However, since the end of November the ETF has slumped more than 10 percent as gold prices have fallen 9.6 percent. What sort of loss would that mean for Paulson? About $672 million, at least on paper.
Further, Paulson was invested in eight other gold companies with his Gold Fund.
Of course, all that means nothing if Paulson reduced his stake or sold out on October 1st. Further, Bloomberg notes that the Gold Fund was up about 11 percent in 2011 through November, meaning it is doing at least break even currently.
And that is better than the 3 percent drop in the S&P 500, but off the 2.8 percent increase for Dow Jones.
Currently, the SPDR Gold Trust is 0.2 percent better on the session, with gold seemingly off $6.4 to $1,580.5 per share on the Comex.
The founder and manager of Paulson & Co. made his mark when the housing bubble burst in 2008, but has notably been suffering through a tough 2011. One more straw is gold.
Paulson has been one of the largest investors in the SPDR Gold Trust ETF (NYSE: GLD), at least through the third quarter. The ETF was actually up 23 percent through November.
However, since the end of November the ETF has slumped more than 10 percent as gold prices have fallen 9.6 percent. What sort of loss would that mean for Paulson? About $672 million, at least on paper.
Further, Paulson was invested in eight other gold companies with his Gold Fund.
Of course, all that means nothing if Paulson reduced his stake or sold out on October 1st. Further, Bloomberg notes that the Gold Fund was up about 11 percent in 2011 through November, meaning it is doing at least break even currently.
And that is better than the 3 percent drop in the S&P 500, but off the 2.8 percent increase for Dow Jones.
Currently, the SPDR Gold Trust is 0.2 percent better on the session, with gold seemingly off $6.4 to $1,580.5 per share on the Comex.
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