Hedge Funds 'Could Cause Disaster' for Gold TANA GOLDFIELDS Mining Fraud Investment Tips
Peter Hambro, one of the leading figures in Britain’s gold mining sector, has criticised hedge funds for distorting the market for gold and warned that there is potential for “disaster” in the industry. Mr Hambro, co-founder and chairman of Russian gold miner Petropavlovsk, made the comment in an interview in The Sunday Telegraph.
The gold price, fixed at $1,376.12 per troy ounce in London on Friday, has fallen more than 30pc from a 2011 peak of more than $1,900.
Figures from the World Gold Council last week showed that ownership of the world’s gold shifted further East during the first half of 2013.
Overall demand for gold was 12pc lower in the three months to the end of June than in the comparable period for 2012, as Westerners dumped their exchange-traded holdings and Asian consumers responded to lower prices by adding to their hoards of jewellery and bullion.
“It’s rather odd,” said Mr Hambro, “Gold is streaming into the Far East. Russians are still buying; the Chinese are buying. There’s no secret. It’s in the international statistics. “Where the selling came from that knocked the gold price down, I really don’t know. It was such a very strange thing.
“I’ve been in the gold business for 35 years and never known a big change like that where it wasn’t obvious where it came from.”
Asked whether he is concerned that hedge funds are distorting ...