On Tuesday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, fell $19.20 to close at $1,448.80 per ounce, while silver (NYSEARCA:SLV) futures for July dipped 15 cents to finish at $23.81.
The recent decline in precious metals has weighed on the portfolios of well-known investors. Billionaire John Paulson lost 27 percent in his Gold Fund last month, according to Bloomberg and people familiar with the matter. Paulson is reportedly down 47 percent year-to-date on his gold bets.
David Einhorn, founder and president of Greenlight Capital, is also an advocate of gold, but was caught off guard by the plunge seen last month. On a conference call, Einhorn explains, “We were somewhat surprised by the swift decline in the price of gold in April.”
By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) dropped 1.25 percent, while the iShares Silver Trust (NYSEARCA:SLV) declined 0.35 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both fell about 3 percent. Shares of Endeavour Silver (NYSE:EXK) plunged 5.4 percent.
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Disclosure: Long EXK, AG, HL, PHYS