In 1885 Beit arranged for Hermann Eckstein and Jim Taylor, to report on the firm's interests in the Barberton and De Kaap goldfields, in which they had invested heavily. Taylor wrote a gloomy report on the extent and quality of the ore lode that brought Porgès hurrying back to South Africa. He and Beit decided to disinvest. The firm suffered a loss, which was trivial compared with what was to follow. The soaring share prices during the boom, were rapidly followed by pessimism, plummeting prices and widespread bankruptcy. Just before the collapse there had been rumours of enormous deposits of gold on the Witwatersrand, about 60 km south of Pretoria. These rumours had reached Porgès and Beit whilst visiting government offices in Pretoria. Initially discounted, they had proved to be true. Beit hurriedly acquired extensive mining rights in Johannesburg.