Renowned fund manager tells clients: gold is good
London (May 12) The latest person to join a growing chorus of investors expecting more to come is Paul Singer, founder of US-based hedge fund Elliot Management Corp.
Bloomberg News has cited a note by Singer to clients at the end of April in which he said it “makes a great deal of sense” to own the yellow metal.
“Investors have increasingly started processing the fact that the world’s central bankers are completely focused on debasing their currencies,” he went on to say.
The gold price has gone up by over US$200 per ounce since the end of 2015 and is currently trading at $1,270/oz. According to Bloomberg, money managers increased their net long positions on gold to the highest level since 2011 when gold reached historic highs.
Singer is also said to be investing in a new royalty and streaming company that will be led by Shaun Usmar, the former Barrick CFO who stepped down last month.
His positive comments have more recently been echoed by the likes of JPMorgan. Speaking on CNBC this week, Solita Marcelli from the private banking arm said: "We’re recommending our clients to position for a new and very long bull market for gold."
Banks like Goldman Sachs remain less positive, with its commodity research team expecting gold to weaken over the next 12 months.