Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Fund Managers Finally View Gold as Undervalued

  by    0   1

Fund managers are starting to view gold as a bargain.

According to Business Insider, in its latest survey of fund managers, Bank of America Merrill Lynch found the majority view gold as “undervalued.” In fact, this is the first time since 2009 that fund managers have marked gold as a good buy.

15 07 15 gold undervalued

By Bank of America’s measure, gold is currently undervalued by about 1%. The current price sits some 40% below its all-time high in 2011.

In a note to clients on Monday, Rick Bensignor, chief market strategist at R.F. Lafferty, said that $1,150 — with a small margin either way — is a big price level for gold.

“At $1,159, gold hits a 61.8% Fibonacci retracement from its all-time high, a key technical support level.”

It’s important to remember that these fund managers rely on technical analysis to make their investment decisions. When it comes to fundamentals and long-term investment, gold has been a good buy for years. Nevertheless, when mainstream financial managers begin to eye gold, it could be a sign that the speculators may be ready to jump back on the bandwagon. It’s these short-term speculators who have a big influence on the price, which could make the second half of 2015 an exciting time for gold.

This represents a tremendous opportunity for long-term gold buyers. With central banks around the world continuing to pursue policies of quantitative easing and currency debasement, Peter Schiff is certain that prices will not remain at this level for the long-term. As we point out in our recently released report Why Buy Gold Now, the perfect storm is brewing – from both a technical and fundamental viewpoint – to send gold to new highs.

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

 

 


Related Posts

Gold Hits New All-Time Record High

Gold hit a new all-time nominal high, surpassing the previous record set in December of the previous year. The precious metal’s price reached approximately $2,140, indicating a robust and continuing interest in gold as a safe-haven asset, despite a rather peculiar lack of fanfare from the media and retail investors. This latest peak in gold […]

READ MORE →

Is a Weak Yen Feeding the Global Gold Bull?

The gold price has been surging, with unprecedented central bank demand gobbling up supply. It has been a force to behold — especially as US monetary policy has been relatively tight since 2022, and 10-year Treasury yields have rocketed up, which generally puts firm downward pressure on gold against USD. 

READ MORE →

World Gold Council: “Blistering Central Bank Buying” Fuels Strong Gold Demand

Total gold demand hit an all-time high in 2023, according to a recent report released by the World Gold Council. Last week, the World Gold Council (WGC) released its Gold Demand Trends report, which tracks developments in the demand for and use of gold around the world. Excluding over-the-counter (OTC) trade, 2023 gold demand fell slightly from 2022 […]

READ MORE →

VIX – The Calm Before the Storm

The VIX, often referred to as ‘Wall Street’s fear gauge,‘ is currently portraying a sense of calm among investors, registering well below the 20 level. 

READ MORE →

Four States Consider Lifting Taxes on Precious Metals

Citizens of Georgia, Kentucky, Wisconsin, and Kansas may soon enjoy lower taxes on precious metals if recently introduced pro-metal bills are made law in 2024.

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now