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Redemption Of Paulson Advantage Funds

|Includes: SPDR Gold Trust ETF (GLD)

Zerohedge reminds us why gold has been falling the last several weeks.

Paulson's Advantage and Advantage Plus funds were said to be dumped by Morgan Stanley. And because 30% of Paulson's portfolio is in gold (NYSEARCA:GLD) and another huge percentage in gold mining stocks, this dragged down the gold market and more importantly the gold mining market. To see a recent filing go here.

I don't believe this is that significant though. Morgan Stanley clients only comprise $100 million of the combined $5.7 billion Advantage and Advantage Plus funds. That's 1.7% and not even worth mentioning.

I wouldn't put too much thought in this. Paulson and Soros are still bullish as far as I can see.

Disclosure: I am long PSLV, AGQ.