When Will It Glitter, Mr. Paulson?

Chidem Kurdas

Chances are, John Paulson does

Paulson Boosts Bet on Metals

Chidem Kurdas

Gold’s glitter may have dimmed but

The Persistence of the Gold Bugs

Last year gold fell 28% against the U.S. dollar,

Copper the New Gold for Paulson?

Chidem Kurdas

John Paulson’s various investment vehicles, ranging from

Gold Glitter Trumps Platinum Value

Worries that the trade is overcrowded has not stopped

Gold May Pan Out, Silver Doubtful

Chidem Kurdas

There probably was a mini bubble in silver, by far the highest returning commodity of the past year. A bubble has been suspected in gold, too.  George Soros’s funds reduced gold exposure—as we at HedgeFundSmarts were the first to report, back in March.  But many hedge funds continue to hold precious metals companies or ETFs.

Larry Kantor, managing director and head of research at Barclays Capital, makes a key point about these markets. There is so much sentiment involved in precious metals that prices can’t be understood in terms of supply and demand, he says. Recently the price of gold went up apparently because of the metal’s role as safe haven  amid  Middle Eastern political turmoil and the European debt crisis.

Gold will struggle to go higher, according to Francisco Blanch, head of global commodities at Bank of America Merrill Lynch Global Research.

Advertisement

Commodity ETFs Used for Shorts

Chidem Kurdas

Exchange–traded fund shares are increasingly used for short selling, in particular in commodity trades. This is in part due to the wider array of commodity ETFs, as well as the availability of their shares for borrowing and short selling.   

Soros Down on Gold?

Chidem Kurdas

Nowadays you don’t hear talk of a gold bubble, even though the metal is still at the near-record highs reached this week. The notion that the steep rise of the past year is sign of a bubble was a hot topic just  months ago.

But between political unrest in the Middle East and the earthquake-tsunami-nuclear threat in Japan, gold once more looked like a safe haven. Of course, it will likely take a downward correction once the geopolitical events appear less threatening. How good an investment is gold now?

Soros in Platinum: Will Gold Dim?

Many hedge funds have tracked the dizzying rise in gold and silver, but that is probably old hat. Too many traders are already there and these commodities are expensive. There may be greater room for gain in platinum and palladium.

No-Double-Dip Conventional Wisdom

Chidem Kurdas

In the past week I’ve encountered a number of forecasts – some from hedge funds and one from the research team at Barclays Capital – of higher-than expected economic growth in the next two quarters. Modest but sustained growth is the most likely immediate scenario, is what you hear all around. But unforeseen events are always, well, unforeseen. They are what the accepted wisdom of the day misses.

Hedge funds’ gold purchases in the past year are evidence of