Paul Singer is pissed that gold keeps losing money—his money—and, like John Paulson, he's mystified that people have temporarily lost some of their attraction to shiny objects.
“Although our gold position lost money in the quarter and afterward, we remain unconvinced that anything resembling a genuine normalization of global economic and financial conditions has been achieved,” Elliott wrote in an addendum accompanying a first-quarter letter to investors. “There is only one store of value and medium of exchange that has stood the test of time as ‘real money’: gold. We expect this dynamic to assert itself in a large way at some point.”
“It is quite frustrating to watch the price of gold fall as the conditions that should cause it to appreciate seem more and more prevalent,” Elliott wrote in the April 25 letter, a copy of which was obtained by Bloomberg News. “Gold may not exactly be a ‘safe haven’ in the sense of an asset whose value is precisely known and stable. But it surely is an asset that, in a particular set of circumstances, becomes a unique and irreplaceable ‘must-have.’”