ZeroHedge Proposes Gold Drop Due to Paulson/GS Problems

[JohnQPublic]

Look For Gold Selloff If Paulson Needs To Shore Up Liquidity On Negative PR (http://www.zerohedge.com/article/look-gold-selloff-if-paulson-needs-shore-liquidity-negative-pr)
Submitted by Tyler Durden on 04/16/2010 08:30 -0700




And judging by the action in gold, the market is already anticipating this.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/paulson/GOLD%204.16.jpg

[JohnQPublic]

Net Gold Commercial Positions Surge To Multi-Month High Short Exposure (http://www.zerohedge.com/article/net-gold-commercial-positions-surge-multi-month-high-short-exposure)
Submitted by Tyler Durden on 04/16/2010 14:01 -0700

The just released CFTC Commitment of Traders indicates that the big banks increased their net short gold exposure to the highest since early 2010, hitting -292,244, a jump of -24,396, and an increase of -69,361 from two weeks prior. Also, in the week ended April 13, the outright Commercial short positions in Gold hit a 2010 record. Gold traders who observed this spike in commercial shorts, especially when combined with the surprising strong gold price action over the past two weeks, are concerned that the news about Goldman, and its ramifications on Paulson's holdings of GLD, may have leaked over the past 10 days to allow banks to front-run today's hit in the price of Gold. The question of whether or not Paulson's worries will materialize into an actual partial or full-scale liqudation will be an open ended question for some time: today many of the key Paulson positions, primarily in financials and commodities have gotten hit hard, leading many to believe that the market may force his hand.


http://www.zerohedge.com/sites/default/files/images/user5/imageroot/paulson/Gold%20CFTC%20April%2016_2.jpg

[JohnQPublic]

Where's Andrew Maguire when you need him?

:dunno

[gunDriller]

The question of whether or not Paulson's worries will materialize into an actual partial or full-scale liqudation will be an open ended question for some time: today many of the key Paulson positions, primarily in financials and commodities have gotten hit hard, leading many to believe that the market may force his hand.

i guess Paulson is the hedge fund manager that invested big in physical gold.

how can the market force his hand ? i thought that was the whole point of physical gold - no counter-party risk.

unless he had exposure on other contracts and had to sell some gold to meet other obligations.

now i'm wondering if somebody is trying to take out Paulson because of his enthusiasm for physical gold.




Where's Andrew Maguire when you need him?

:dunno


i don't think we've seen the last of him.

i HOPE we hear some more from him.