Billionaire
hedge fund manager John Paulson, who cut his gold holdings by more than half in
the second quarter, maintained his bet on the metal over the next three months
as prices rebounded.
Paulson
& Co., the largest investor in the SPDR Gold Trust, the biggest
exchange-traded product for the metal, held 10.23 million shares as of Sept.
30, unchanged from June 30, according to a government filing yesterday.
Billionaire George Soros took a stake in the Market Vectors Gold Miners ETF.
Global
bullion demand tumbled 21 percent last quarter as investors pulled 118.7 metric
tons out of ETFs and similar products, World Gold Council data show. Prices
that fell into a bear market in April have rebounded 9.1 percent since reaching
a 34-month low on June 28 as purchases of coins and jewelry rose. The metal is
still headed for its first annual loss since 2000 as equities rallied and
inflation failed to accelerate after the Federal Reserve’s unprecedented money
printing.
Gold
futures in New York declined 23 percent this year to $1,286.30 an ounce,
outpacing the 4.6 percent drop for the Standard & Poor’s GSCI Spot Index of
24 commodities. The MSCI All-Country World Index of equities climbed 17
percent, and the Bloomberg Dollar Index gained 3.3 percent. The Bloomberg U.S.
Treasury Bond Index declined 2.6 percent.
(Source: Bloomberg)