“Another famous value investor, New York-based hedge fund manager, John Paulson, who made billions by positioning his portfolios for a collapse of the US’s subprime market also seems to concerned by inflation. Paulson & Co’s quarterly filing to the US’s Securities Exchange Commission, made on Monday, reflects his nervousness. He continues to bet big on gold, a traditional hedge against higher inflation,” Alec Hogg Reports From Mineweb.  

Hogg goes on to say, “The F-13 filing required by American authorities to be lodged within 45 days of every quarter end, must provide detail of all listed US equities and derivatives owned by money managers. Foreign assets and bonds need not be disclosed. Paulson & Co’s end March position provides detail on $21.2bn of its $35bn in assets under management.”  

“Although Paulson’s biggest purchase during the quarter was adding almost $300m worth of Bank of America shares (NYSE:BAC), his fund’s largest single holding is in the SPDR Gold ETF (NYSE:GLD) which houses one in every six dollars he has invested in US equities. South African headquartered AngloGold Ashanti (NYSE:AU) received a further $34m in fresh investment during the quarter with a further $28m bought in Canadian gold digger Kinross shares (NYSE:KGC), also among Paulson’s top ten holdings,” Hogg Reports. 

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	Paulson & Co’s top holdings end March 2010		Holding Mar 2010	Value purchased	% of total
			($m)	March qtr ($m)	equity holdings
1	SPDR Gold Trust (NYSE:GLD)	Gold ETF	3 431.9	0.0	16.2%
2	Bank of America Corp (NYSE:BAC)	Banks	2 995.1	299.0	14.2%
3	Citigroup Inc. (NYSE:C)	Banks	2 052.0	0.0	9.7%
4	Anglogold Ashanti Ltd. (NYSE:AU)	Gold Mining	1 660.3	34.1	7.9%
5	Comcast Corp. (NASDAQ: CMCSA)	Media	828.1	0.0	3.9%
6	Suntrust Bank Inc. (NYSE:STI)	Banks	813.9	0.0	3.9%
7	Boston Scientific Corp (NYSE:BSX)	Medical equipment	715.8	0.0	3.4%
8	Capital One Financial Corp (NYSE:COF)	Consumer finance	704.0	0.0	3.3%
9	XTO Energy Inc. (NYSE:XTO)	Oil and gas	613.3	141.5	2.9%
10	Kinross Gold Corp (NYSE:KGC)	Gold mining	567.1	28.1	2.7%

John Melloy From CNBC added to the news and reported “And in a seemingly contradictory move, Paulson continued to add to his positions in gold miners AngloGold and Kinross Gold. Almost a third of his reported holdings are gold ETFs or miners, according to Block. With gold seen as a safety play, traders are trying to figure out the scenario Paulson envisions where banks, casinos and gold all go higher at the same time.”  

“The miners position is consistent with a bullish view on the global economy,” said Tim Seymour, founder of Emerging Money and a ‘Fast Money’ trader. “The miners have typically not done well during the ‘run for cover’ bullion trade.”  

“Despite arguably making more money than anyone else in the world by betting early against the housing market collapse, some strategists and investors are on the fence about following Paulson this time,” John Melloy from CNBC Reports.  

“History says guys that make a killing in a one-directional trade like he did with subprime in 2008 typically don’t have a second encore as big,” said Gary Kaminsky, who used to manage $13 billion for Neuberger Berman and is now a contributing editor for CNBC.  “Think of all the tech gurus who disappeared after 2003.”  

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Investors have turned to gold ETFs as a safe haven during the recent stock market turmoil.  They offer a great way to protect you against risk in your portfolio during uncertain times. We have put together some ETF options in gold for your viewing below:              

LONG:              

The investment SPDR Gold ETF (NYSE: GLD) seeks to replicate the performance, net of expenses, of the price of gold bullion. The trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the trust terminates and liquidates its assets, or as otherwise required by law or regulation.              

The investment ETF (NYSE: GDX) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the AMEX Gold Miners index. The fund generally normally invests at least 80% of its total assets in common stocks and American depositary receipts (ADRs) of companies involved in the gold mining industry. The fund is nondiversified.              

The Funds ETF (NYSE: GDXJ) investment objective is to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Junior Gold Miners Index (the “Junior Gold Miners Index”). For a further description of the Junior Gold Miners Index, see “Junior Gold Miners Index.”              

The objective of ETF (NYSE: SGOL) the newly listed shares is to reflect the performance of the price of Gold bullion, less the Trust’s operating expenses. The Trust is open ended and is designed for investors who want a cost-effective(1) and convenient(2) way to invest in Gold as well as diversify their Gold holdings.              

The investment ETF (NYSE: UGL) will seek to replicate, net of expenses, twice the performance of gold bullion as measured by the U.S. Dollar p.m. fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics twice the return of the index. It may employ leveraged investment techniques in seeking its investment objective.              

The investment ETF (NYSE: DGL) seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Liquid Commodity Index – Optimum Yield Gold Excess Return. The index is a rules-based index composed of futures contracts on gold and is intended to reflect the performance of gold.              

The investment ETF (NYSE: DGP) seeks to replicate, net of expenses, twice the daily performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Gold Excess Return. The index is intended to reflect changes in the market value of certain gold futures contracts and is comprised of a single unfunded gold futures contract.              

The objective ETF (NYSE: IAU) of the trust is for the value of its shares to reflect, at any given time, the price of gold owned by the trust at that time, less the trust’s expenses and liabilities. The trust is not actively managed. It receives gold deposited with it in exchange for the creation of baskets of iShares, sells gold as necessary to cover the trust’s liabilities, and delivers gold in exchange for baskets of iShares surrendered to it for redemption. The trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act.              

SHORT:              

The investment ETF (NYSE: DZZ) seeks to replicate, net of expenses, twice the inverse of the daily performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Gold Excess Return. The index is intended to reflect changes in the market value of certain gold futures contracts and is comprised of a single unfunded gold futures contract.              

The investment ETF (NYSE: GLL) will seek to replicate, net of expenses, twice the inverse daily performance of gold bullion as measured by the U.S. Dollar p.m. fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics inverse to the index. It may employ leveraged investment techniques in seeking its investment objective.

NYSE:GLD