Gold funds were standout winners in August as investors' appetite for risk waned amid concerns of a tapering of monetary stimulus in the US and potential military action in Syria.
Investment managers are beginning to question the value of holding gold for diversification purposes, as its correlation to equity markets soared to 65% this year.
Gold has climbed above the $1,400 mark for the first time since June, re-entering a bull market as disappointing US data and worries over Syria push investors into safe havens.
George Soros has sold down all his gold holdings and has stocked up on unloved retailer JC Penney, nutrition supplement firm Herbalife, and tech giant Apple.
J.P. Morgan Asset Management’s Neil Gregson has taken his exposure to gold miners to a historic low of 15% as the sector continues to suffer a torrid period of underperformance.
Hedge funds have heavily upped exposure to gold in recent weeks, viewing the metal's poor relative performance year-to-date as a buying opportunity.
Iain Stewart, manager of the £7.9bn Newton Real Return fund, has added to his gold holdings in the belief the precious metal can still act as a hedging tool in investors’ portfolios.
Morningstar has revealed the ten most popular exchange-traded funds (ETFs) in the second quarter of 2013, based on the most searched for funds on its website.
Japanese investors have reacted with muted enthusiasm to a sweeping election victory by Shinzo Abe's Liberal Democratic Party.
Ben Bernanke, the chairman of the Federal Reserve, has said he does not understand gold prices or why investors hold it during certain economic environments.
Hedge fund manager John Paulson's gold fund has posted its third successive double-digit monthly loss and now stands down 65% this year, according to reports.
A tumultuous June may have taken the edge off many of the sizeable gains made by funds in the first half of 2013, but it was not enough to derail performance completely.
The price of gold has continued its decline, falling below the $1,200 mark on Thursday for the first time since August 2010.
The gold spot price hit a 33-month low today after positive US economic data strengthened the case for a tapering of quantitative easing, further eroding demand for safe havens.
Gold is likely to suffer from further sell-offs in the short to medium term as investors remain focused on an end to quantitative easing, Steve Russell, investment director at Ruffer, has said.
Nitesh Shah, research analyst at ETF Securities, says while the price of gold has dipped recently, other precious metals could provide investors with a good return as economic conditions improve.
Many UK-listed stocks have got off to a flying start in 2013, with indices approaching all-time highs, but some companies have been given a rough ride by markets, destroying shareholders' capital in the process.
Outflows from gold-backed exchange traded funds in 2013 are now greater than the combined level of inflows seen in 2011 and 2012, according to Bloomberg data.
The recent sell-off in gold and silver has led to fears precious metals may yet have further to fall, but some investors have backed them to provide a boost for portfolios later this year as they recover some lost ground.
The Ruffer Investment Company saw NAV hit a record high in April as soaring Japanese equities helped offset exposure to struggling gold miners.
First State Investments’ Angus Tulloch and Jonathan Asante have both been adding to resources stocks in recent weeks across their GEM portfolios, following the sharp pullback in the gold spot price and the valuations of a number of miners.
The recent gold price volatility could plague investors for some time, and further selling is also a risk, according to BlackRock’s natural resources head Evy Hambro.