Paulson Buys Gold & Becomes Largest Shareholder Of GLD ETF

Back in the summer, when the gold price was hovering at its critical juncture at around $1,550, we wrote that smart money like Paulson and Soros was accumulating gold. Obviously the Chinese belong to this group too. It appeared afterwards that smart money prevented the gold price to drop below $1,520, a price point that acted as the ultimate support.

Today Bloomberg reported that Paulson has been continuing his gold purchases, mainly via the SPDR Gold ETF. He just became the largest owner of the GLD, based on the Nov. 15 SEC filing. That’s more than remarkable news. These are the figures that give an idea of the magnitude of Paulson’s gold holdings:

  • Paulson currently owns 21.8 million shares in the SPDR Gold Trust GLD.
  • He raised his stake in GLD by 26 percent in the second quarter of 2012.
  • He is currently holding about 66 metric tons of gold.
  • His gold holdings total 29% of his portfolio.
Moreover, Soros increased his investment in the trust in the third quarter to 1.32 million shares, which is the highest number since 2010.

Now let’s put those figures into perspective. First let’s review the total gold holdings of the GLD. The following chart shows both the gold price and the GLD gold holdings in metric tonnes. As per the 20th of November, the total volume equals 1342 tonnes. Chart courtesy: Goldchartsrus.

It’s useful to compare the above figures with the gold holdings by countries (central banks). Based on the latest World Gold Council statistics (November 2012), it appears that the GLD should be ranked in the top 6 while Paulson’s holdings would come on the 44th place.

 

 

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