Gold Bugs Beware: John Paulson's Gold Fund Stumbles as Sentiment Sours

As gold surged past $1,200 an ounce amid record deficits and a weakening dollar in November, gold bugs got another massive vote of confidence. John Paulson, the high-profile, billionaire hedge fund manager who had just made a killing betting against the sub prime meltdown, launched a fund dedicated to the precious metal.