There are small misunderstandings, like the one chronicled by Robert Grover in his cult book, “One Hundred Dollar Misunderstanding”. Then there are really big ones.
The miscalculation by hedge fund gurus John Paulson and David Einhorn relating to the price of gold falls into the latter category. According to an article in Forbes, Paulson had a paper loss of around $1.4 billion on his gold investment this year, although he still has a gain since he created the gold share class for his hedge fund in 2009 when gold was selling at $950 an ounce.David Einhorn, who runs hedge funds (including a dedicated gold fund) at Greenlight Capital Management, also bet heavily on gold. According to Reuters, Einhorn’s investment in gold was recently listed as its third largest position in its main fund.
now seems i remember Glen Beck and the FOX crew pushing gold to their viewers, for those who did not heed his warning that if they listen and took him serious they were idiots,
wonder how many are not fans today?
While you are holding gold, it is not paying any dividends or engaging in any productive activity (like manufacturing goods or providing services). Your investment is premised on the assumption that there will come a time when you can sell your gold for more than you paid. Of course, that is the same assumption the investor who sold gold to you was making.
looks like no good ever comes from hitching your horse to a one wheel wagon, such as investors like Beck who in reality was suckering you into buying his gold, are you feeling that used and discarded thing that comes with "i've been hornswoggled"? you just bought a pig in a poke with no makeup, just the swine that sold it to you.
