Wednesday, July 22, 2015

Top Money Managers Deemed Gold Undervalued First Time in 5 Years

With the current beaten gold price (paper market), many gold stocks have been slammed and oversold.  This is attracting attention from a number of top money managers to turn to gold.  According to the BofA Merrill Lynch Fund Manager Survey for July, "gold judged undervalued for first time in five years."

In fact, gold has been undervalued for a long time with all the money printing by the various central banks around the world.  Gold price may continue to drop as the Fed keeps its talk on interest rate rising, which is causing the US Dollar to rise.  But as soon as they decide to delay this decision in view of the current deflationary economic situation around the world, gold price will shoot up again as people move away from the US Dollar into hard assets like gold and silver.

So be sure you own some physical gold or silver and mining stocks while they are much hated.

1 comment:

  1. So many gold bugs don't understand the first thing about post-Bretton Woods finance. They note massive central bank liquidity increases, in response to a run on the shadow banking system, and believe inflation has been let loose. When in reality the problem is deflation. And so they bet the wrong way on gold year after year, even as commodity prices plunge. Hasn't the drop from 1900 to 1000 taught them anything? Apparently not.