Gold Is Undervalued – Leading Money Managers

Thursday, February 16, 2017
By Paul Martin

By: GoldCore
GoldSeek.com
Thursday, 16 February 2017

Gold is undervalued according to a record number of fund managers
Last time gold was considered undervalued, the price surged
BAML surveyed 175 money managers with $543 billion in assets under management
34% of investors believe protectionism is the biggest threat to markets
Gold viewed as the best protectionist investment by a third of investors

For the third time in a decade fund managers surveyed by Bank of America Merrill Lynch (BAML) believe that gold is undervalued. After the last two occasions the price of gold shot up.

The Bank of America Merrill Lynch Fund Managers survey spoke to 175 money managers with $543 billion in assets under management. It provides key indicators each month of those who run and manage the world’s investments. The news that they are buying gold and believe it is undervalued, is worth paying attention to.

As we often mention the status quo amongst money managers is for them to be bearish about gold, regardless of the price and state of the global economy. But this month, a majority of those surveyed (by a net margin of 15%) believe that gold is a buy, something that hasn’t been seen since January 2009 and January 2015.

As Brett Arends writes on Marketwatch, this is significant:

“The latest survey opinion is of more than passing interest. These guys typically do not hold gold in their portfolios. Indeed, to buy some, most of them will have to go through investment committees, which takes weeks or months. But if they are interested, and they stay interested, that will presumably drive more demand for gold as an investment in the months ahead.”

The Rest…HERE

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