October 4, 2012
If you are the person who sold 1,300 tons of Swiss gold in the pre-”New Normal” era, you probably would like to keep that fact to yourself. But not Michael Paprotta, or the guy who didsell 1,300 tons of gold for the Swiss National Bank from 2000 to 2005. As a reminder, the price of gold in the period was between $250 and $450, making Gordon Brown’s own dump of a meager 400 tons of UK gold between 1999 and 2002 seem like amateur hour by comparison. Assuming a current price of gold of $1800 and a blended disposition price of $350/oz, this means that Switzerland effectively gave up on just under $60 billion in upside. That’s ok though, the SNB’s balance sheet is now full to the gills with money-good EURs. Who needs gold in a fiat regime anyway? Certainly not Michael Paprotta who gives up on tens (soon hundreds) of billions in gold upside fiat equivalents in the morning, then goes skiing in the afternoon.
And for those who are not familiar with the brilliant Swiss gold selling operation…
Source: SNB’s Philip Hildebrand
This article was posted: Thursday, October 4, 2012 at 8:06 am