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<p>[QUOTE=&quot;Yankee, post: 610572, member: 18618&quot;]<b><a href="http://blogs.wsj.com/marketbeat/" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://blogs.wsj.com/marketbeat/" rel="nofollow">MarketBeat</a> </b></p><p><br /></p><p>WSJ.com&#039;s inside look at the markets</p><ul> <li><span style="color: #666666">June 9, 2009, 9:26 AM ET</span></li> </ul><p><b>John Paulson, Gold and Gabriel Resources</b></p><p><br /></p><p><br /></p><p><br /></p><ul> <li><a href="http://blogs.wsj.com/marketbeat/2009/06/09/john-paulson-gold-and-gabriel-resources/" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://blogs.wsj.com/marketbeat/2009/06/09/john-paulson-gold-and-gabriel-resources/" rel="nofollow"><span style="color: #000000">Article</span></a></li> <li><a href="http://blogs.wsj.com/marketbeat/2009/06/09/john-paulson-gold-and-gabriel-resources/tab/comments/" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://blogs.wsj.com/marketbeat/2009/06/09/john-paulson-gold-and-gabriel-resources/tab/comments/" rel="nofollow">Comments (4)</a></li> </ul><p><a href="http://blogs.wsj.com/marketbeat/" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://blogs.wsj.com/marketbeat/" rel="nofollow"><span style="color: #c74b15">MarketBeat HOME PAGE</span></a> </p><p><br /></p><p><b>By Matt Phillips</b></p><p><br /></p><p>There’s an interesting tidbit at the bottom of the <a href="http://online.wsj.com/public/page/news-wall-street-heard.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://online.wsj.com/public/page/news-wall-street-heard.html" rel="nofollow"><span style="color: #093d72">The Journal’s Heard on the Street today</span></a>. It’s pegged to a first-quarter decision to build a stake in a Toronto gold-mining company by hedge fund Paulson &amp; Co. The fund is run by John Paulson, the investor best known for savvy bets that made him<a href="http://online.wsj.com/public/article/SB120036645057290423.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://online.wsj.com/public/article/SB120036645057290423.html" rel="nofollow"><span style="color: #093d72"> billions on the collapse in housing</span></a>. </p><p>The company in question is Gabriel Resources, which has spent years wrestling with environmentalists as it tries to develop its main asset. </p><blockquote><p>In the first quarter, John Paulson’s Paulson &amp; Co. lifted its stake by nearly six million shares, to 18%. Other funds that are bullish on gold also are eyeing the stock, which is down 25% to 2.19 Canadian dollars ($1.96) in the past year despite the resilient gold price. Gabriel’s main asset: a majority stake in a large Romanian gold mine. The problem: That mine produces no gold.</p><p>Environmentalists have long been hot under the collar, worried about potential cyanide poisoning. Their protests have helped block Gabriel’s decadelong efforts to open a modern mine at the site, known as Rosia Montana. Yet as gold fever continues to rage, the hedge funds appear to be banking on yellow trumping green.</p><p><br /></p></blockquote><p>There’s a serious case to be made for gold, largely tied to worries about currency values as central banks flood markets with cash. Still, in a recent column on the possibility of a gold bubble developing, <a href="http://online.wsj.com/article/SB124414646645386355.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://online.wsj.com/article/SB124414646645386355.html" rel="nofollow"><span style="color: #093d72">Brett Arends noted</span></a>: </p><blockquote><p>While U.S. and other Western investors are jumping aboard the golden caravan, many in Asia — who rode it all the way from $260 an ounce — are quietly disembarking. The World Gold Council, an industry body, reports that Asian investors were actually net sellers during the first quarter, while westerners bought heavily</p><p><br /></p></blockquote><p>[/QUOTE]</p><p><br /></p>

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