Paulson Gold Fund Down 65% In 2013

With spot gold prices down 28% year-to-date, it appears John Paulson‘s Gold Fund has managed to create some epic high-beta losses.

In a letter to investors, Paulson explains his fund fell 23% in June, is down 65% in 2013; but do not fear – as he concludes time and time again, the gold fund will “produce outsized returns in the long-run”.

From Bloomberg:

John Paulson, the billionaire hedge-fund manager seeking to rebound from losses tied to bullion, posted a 23 percent decline in his PFR Gold Fund last month, according to a letter to investors.

The drop brings losses in the strategy, formerly known as the Paulson Gold Fund, to 65 percent since the start of the year, the firm said in the July 3 letter, a copy of which was obtained by Bloomberg News. The fund, which consists mostly of Paulson’s own money, is the smallest strategy of the $19 billion money manager and the only one to post losses this year.

The firm reiterated its commitment to investing in bullion and stocks of gold producers for protection against currency debasement as central banks pump money into the global economy. Gold dropped 12 percent in June, the most since October 2008, after Federal Reserve Chairman Ben S. Bernanke said he may start reducing bond purchases that have fueled gains in financial markets globally.

“Although the timing is uncertain, if you have a long-term view we believe the funds offer the potential for outsized returns,” the firm wrote in the letter.

Armel Leslie, a spokesman for Paulson & Co. at Walek & Associates, declined to comment on the letter.

What is there to say.

Source: http://www.zerohedge.com/news/2013-07-08/and-scene-paulson-gold-fund-down-65-2013

More U.S. states looking to legalize gold and silver as currency while ditching dollars

As the U.S. government continues to crank out dollars like they were Monopoly money, more and more states – fearing an eventual collapse of the currency, most likely – are looking at ways to legalize and utilize gold and silver as currency.

Shunning trust in the Fed chairman Ben Bernanke, the Treasury and the economic policies of the Obama administration, more than a dozen states are considering adoption of the alternative currencies.

Utah lawmakers and Gov. Gary Herbert enacted legislation in 2011 that authorizes bullion for use as currency; now, similar bills are under consideration in Kansas, South Carolina and other states, according to Bloomberg News.

The measures are being supported by limited government advocates in these states yet for now passage of such laws are largely symbolic. You can’t, for instance, go grocery shopping in Utah and pay for your items with gold.

Concern about impending ‘collapse of the dollar’

These measures are important because they are reflective of growing concerns over the longevity and viability of the U.S. dollar – concerns that have been heightened by the Fed’s rather unconventional moves (like massive printing of trillions of excess dollars) in recent years, in some weird attempt to “stabilize” the economy, says Loren Gatch, a politics professor at theUniversity of Central Oklahoma.

“The legislation is about signaling discontent with monetary policy and about what Ben Bernanke is doing,” Gatch, who studies alternative currencies at the Edmond, Oklahoma-based school, told Bloomberg. “There is a fear that the government, or Bernanke in particular and the Federal Reserve, is pursuing a policy that will lead to the collapse of the dollar. That’s what is behind it.”

There is good reason for such concern.

For one, Bernanke and the other money masters have been manipulating currency and the markets for years, all in a way that benefits the Wall Street and banking elites. The Fed chairman has been keeping interest rates near zero since the beginning of the Great Recession in December 2007 primarily because elevated rates would devastate the federal government, which is paying hundreds of billions in interest payments on borrowed money as it is.

And this irresponsible fiscal manipulation is ongoing. Per Bloomberg News:

The Fed said in March it would continue buying $85 billion in securities each month in a program known as quantitative easing that has ballooned its assets beyond $3 trillion and is aimed at keeping long-term borrowing costs low to support economic growth.

Moreover, economic figures are being fabricated. According to an inflation measure “favored by the Fed,” Bloomberg notes, consumer prices rose just 1.3 percent in February over the previous year. Yet anyone who is trying to earn a living knows that two of the most purchased items – food and gas – are chiefly responsible for the dramatic cost of living rises in recent years. And yet, they aren’t even factored into the government’s inflation figures because they are considered too “volatile.”

Gold, silver making comebacks

Investors bet that inflationary pressures would increase because of the government’s phony “economic stimulus” measures that did nothing but pile on more debt. Still, that speculation led to a 78 percent rise in gold prices since December 2008. The historic precious metal hit a high of $1,923.70 an ounce in 2011; since then, prices have retreated and have remained flat. Now they are around $1,535 an ounce, which is still high.

But when inflation does kick in – and it will – the value of gold and the other historically valuable currency, silver – will increase as well. States considering using these precious metals as currency once more seek to use them as a fall-back when the dollar finally does collapse.

Texas gold is not just in the oil fields

One state, in fact, is so concerned about the dollar’s economic future it is considering legislation to regain physical possession over its gold.

Texas Gov. Rick Perry and a number of lawmakers want to establish the Texas Bullion Depository to store some 6,643 gold bars valued at about $1 billion that are currently being held in a New York bank warehouse. The gold, which is owned by the University of Texas Investment Management Co., or UTIMCO, took delivery of the bars in 2011 over concerns that rising demand would eventually outpace supply.

The facility would also accept deposits from the general public, and serve as a basis for a payments system in the state in case a “systemic dislocation in a national and international financial system” were to occur, the legislation says.

Jim Rickards, the senior managing director at the Tangent Capital Partners LLC in New York, and author of Currency Wars: The Making of the Next Global Crisis, said if Texas were to enact its legislation, it would mean sovereign backing of deposits, like when the dollar was based on the gold standard, and make the purchase and storage of gold easier.

“We are seeing a distinct movement back to a world where gold is considered money,” Rickards told Bloomberg News.

Source: http://www.naturalnews.com/039984_gold_currency_states.html

MCX Crude Oil: Intra day short sell position advised around Rs 5150 SL Rs 5180

Last Updated : 15 January 2013 at 16:55 IST

MCX Crude Oil: Intra-day short sell position advised around Rs.5150; SL Rs.5180

Source :Commodity Online Research Desk

 

Crude Oil January futures have a good support at Rs.5100 and resistance at Rs.5160. Intra-day traders are advised to take a short sell position in crude oil January futures around Rs 5150 with stop loss of Rs 5180 and wait for the target Rs 5110 and 5080 for the day.

By Ankush Kumar Jain
MCX crude oil for January delivery has been trading in the range between Rs 5060 and Rs.5180 for the last 8 to 9 trading sessions. A sideways trend is expected intra-day in domestic markets.

Breakout to any of the sides would give a clear direction for coming sessions, until then the futures are expected to trade in the aforesaid range.

Crude Oil January futures have a good support at Rs.5100 and resistance at Rs.5160. Intra-day traders are advised to take a short sell position in crude oil January futures around Rs 5150 with stop loss of Rs 5180 and wait for the target Rs 5110 and 5080 for the day.

On the NYMEX, WTI crude oil for delivery on March 13 was seen trading at $94.51 a loss of $0.08 or 0.08%. Brent crude oil on the ICE Futures Europe was spotted trading at $110.95 a gain if $0.01 as of 04.44 PM IST.

The WTI futures came close to testing the $95 levels but fell short of it at $94.86 a barrel in the afternoon session.

US retail sales data are forecast to climb for a second month in December, Bloomberg predicted as Commerce Department data is due this evening.

“There are signs of a recovery in the U.S.,” said Jonathan Barratt, the chief executive officer of Barratt’s Bulletin to Bloomberg News.

“If we test $95 a barrel on the topside then I think we’ll see oil break through.” he added.

Source