Paulson’s $30 billion hedge fund remained the largest holder of SPDR Gold Shares at the end of September with a position worth $3.5 billion based on the current gold price of $1,779 an ounce, the Financial Times reported Tuesday. Paulson also uses the ETF to let his investors denominate their holdings in gold, rather than U.S. dollars, according to the story.
“A person familiar with the firm said that the sale may reflect the relative cost of different securities used to create the gold share class, rather than an overall reduction in … Paulson’s exposure to gold,” the FT reported.
“The shift does not mean Paulson is moving away from his bullish view on gold, a person familiar with the matter said. Paulson has found ways to get exposure to gold through futures or other products that don’t necessarily show up in regulatory filings, the person said,” according to a separate report from MarketWatch.
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD.