As you may already know, John Paulson is not having a good year. Investors have been pulling out of his funds and his funds have been slammed thanks to Greece and Puerto Rico. Unfortunately for him though, that’s not the end of it.
Not long after he reduced his billion-dollar stake in the SPDR Gold Trust, gold prices worldwide have staged a comeback. Spot gold is currently up 0.4% to $1,117.80 an ounce while gold for December delivery climbed 0.4% to $1,117.30.
Bullish positions on Comex gold meanwhile have surged by nearly 3000 contracts – almost seven times more than what the shorts added this week – while over in China, the PBOC has announced that it has ramped up its gold holdings to 1,677 tonnes.
Needless to say, Paulson’s timing could have been better. One guy however, seemed to have timed his entry pretty well; Stanley Druckenmiller – the former right hand of Soros – recently revealed that he snapped up $323.6 million worth of GLD in the second quarter, just in time for him to catch the bottom.
Photo: Bullion Vault