Gold funds plummet as link to price breaks down

Funds invested in gold stocks are plummeting as investors desperately sell off equities and the relat...

Funds invested in gold stocks are plummeting as investors desperately sell off equities and the relationship with gold price breaks down. The Forex Price Index for gold has come down from a peak of over $1000 an ounce in March to under $700 on Friday. In a single week this month, the £27m Investec Global Gold fund lost 23.1% of its value according to Morningstar. But even following such a drop, there are worse one-year losers still, including BlackRock’s Gold & General, down 47.4% compared to Investec’s 45% loss. JPMorgan’s £1bn Natural Resources fund, which is heavily exposed to gol...