Paulson’s gold fund plunges 65 percent through June

Tumbling gold prices are believed to have taken the shine off John Paulson’s gold fund. Photo: Reuters

Hedge fund manager John Paulson’s gold fund has lost 65 per cent of its worth so far this year after the portfolio declined 23 per cent last month, two people familiar with the fund said.

Tuesday, 9 July, 2013, 12:20pm 1 comment

Price-cost pinch dulls last lustre of South Africa’s gold

Striking gold miners evicted from company housing at a gold mine occupy a hill in this October 2012 protest. Photo: Reuters

A hand drill lying in the hillside tunnel of a 19th-century South African gold mine testifies to the back-breaking labour by black miners that built what was once the world’s biggest bullion industry.

But even with basic tools and cheap labour, costs overran returns at the Kromdraai gold mine north of Johannesburg, which listed in London in 1893 and closed in 1914.

8 Jul 2013 - 2:12pm

Gold climbs for 2nd day on safe-haven buying

 Bullion has gained nearly 2 per cent so far this week after posting its biggest quarterly loss on record. Photo: Reuters

Gold edged higher for a second session on Thursday as worries over Europe and Egypt prompted safe-haven buying, but the mood remained cautious ahead of US jobs data that could determine the outlook for the Federal Reserve’s stimulus measures.

4 Jul 2013 - 12:29pm

CME raises margins for gold as prices drop

Spot gold hit a low of US$1,276.19 an ounce on Thursday, its lowest level since September 2010. Photo: Reuters

The CME Group, parent of the Chicago Board of Trade, raised initial margins for Comex gold after prices plunged to their lowest in three years on Thursday.

Gold prices plunged over 5 per cent to the lowest in three years on Thursday, leading a global market rout one day after the US Federal Reserve gave its most explicit signal yet that it plans to wind down the era of easy money.

21 Jun 2013 - 11:48am

China gold demand to slow from April surge amid decline in gift buying

A customer visits a gold store in Qingdao, Shandong.

Gold has declined 16 per cent this year on concern the US Federal Reserve may rein in stimulus that helped bullion cap a 12-year bull run in 2012 and as some investors lost faith in the metal as a store of value.

1 Jun 2013 - 4:19am

Yuan's rise powers surge in gold trade

The yuan touched 6.1279 per US dollar yesterday in Shanghai. Photo: Bloomberg

Average daily volume was 6.5 billion yuan (HK$8.2 billion) so far this year, compared with 1.8 billion yuan for the same period last year, according to the Chinese Gold & Silver Exchange Society. That exceeds the 4.9 billion yuan target set when the contracts were introduced in October 2011.

25 May 2013 - 4:44am

Bulls return to bullion after Bernanke comments

Investors have sold almost US$21 billion of gold this year. Photo: AFP

In a survey, 12 analysts expect prices to rise next week, with nine bearish and eight neutral, the highest proportion of bulls since April 26. Bullion is poised for its first weekly gain in three and trading and investment company Degussa Goldhandel said demand this month will be double the first-quarter average.

25 May 2013 - 2:53am 1 comment

China banks curb loans to commodities firms in hot-money battle

Chinese commodities firms importing everything from gold and rubber to base metals are struggling to get trade loans as banks scrutinise their activities and hold back credit following Beijing's orders to rein in currency speculation. Photo: Reuters

Chinese commodities firms are struggling to get trade loans as banks scrutinise their activities and hold back credit following Beijing’s orders to rein in currency speculation.

22 May 2013 - 5:02pm

Gold price seen as still high despite big fall

After the gold rush... shelves in a Causeway Bay shop are half empty after a rush of buying from mainland tourists seeking bargains after a sharp selloff in the precious metal. Photo: SCMP

While falling gold prices have sent a flood of Chinese housewives to Causeway Bay jewellery shops to hunt for bargains, Singapore's top investment official has warned that the precious metal still looks overpriced.

22 May 2013 - 4:36am 2 comments

Hong Kong Mercantile Exchange fails amid dearth of gold futures trading

Barry Cheung Chun-yuen, HKMEx chairman. Photo: David Wong

The Hong Kong Mercantile Exchange's failure to come up with a viable gold futures business proved to be its undoing as it wilted under competition from more established domestic and international exchanges, market participants say.

20 May 2013 - 4:18am

Gold falls as Soros and BlackRock cut investments

Physical buying of gold has not been enough to lift the market.

Gold dropped to the lowest in almost a month as filings showed that George Soros and BlackRock cut holdings of bullion-backed exchange-traded products, adding to signs that investment demand is waning as US equities rally to records.

17 May 2013 - 4:06am

Bitten by the gold bug

John Paulson's US$500 million Gold Fund, most of it his own money, is said to have lost 27 per cent last month. Photo: Bloomberg

On a conference call with investors last month, John Paulson, whose bet against the US subprime mortgage bubble in 2007 has been called "the greatest trade ever", boasted that one of his biggest hedge funds would have been up 15 per cent this year -- if only he had not owned gold stocks.

10 May 2013 - 5:23am

Chinese mothers beat Wall Street to force gold price rebound

Gold prices are rising again as Asian mothers take advantage of the recent weakness in the price to buy jewellery. Photo: David Wong

Taking advantage of the steepest drop in three decades, Chinese mothers have shored up prices by splashing out on gold for their daughters' weddings in the past couple of weeks, foiling the plan of finance gurus who have been short selling the precious metal in the hope of pushing it lower.

3 May 2013 - 8:48am 4 comments

Gold drops after fund holdings fall

A gold replica of Japan's Mount Fuji by Japanese jewellery maker Ginza Tanaka. Gold prices fell 7.7 per cent last month. Photo: Reuters

The price of gold fell more than 2 per cent yesterday, set for its biggest daily drop since the metal's historic decline in mid-April, hit by a commodities sell-off and uncertainty ahead of a policy statement by the US Federal Reserve.

2 May 2013 - 3:47am

Gold hunt: jewellery outshines luxury goods in golden week

Mainland tourists make their presence felt in Canton Road, Tsim Sha Tsui, as they make a bee-line for jewellery shops yesterday. Photo: Sam Tsang

Mainland tourists spent less on luxury products during the first two days of the "golden week" holiday as they remained preoccupied with gold hunting.

1 May 2013 - 7:51am