Finance

Rookie Trader’s Rapid 84% Wipeout Shows Depth of China Gold Bust

The gold rally has been building for a number of years as central banks expanded their holdings.

Photographer: Akos Stiller/Bloomberg

From hedge funds to homemakers, the leverage-loving Chinese traders behind gold’s record rally are now nursing big losses after one of the fastest market reversals in years.

For Merry Chen, a 42-year-old homemaker in Hangzhou, the foray into precious metals lasted less than a week. With no prior experience in derivatives, Chen opened a futures account last Monday on the advice of friends.