At $1,084 per ounce, gold is scraping multiyear lows, down 42% in four years.
And it seems the gold bears dominate the headlines – everywhere you look, each news item seems more negative than the last.
There have been calls for gold to hit $800… and even lower.
But all this negative buzz really belies excellent fundamentals. The truth is, we're so close to the bottom right now that we've got one of the best chances to buy gold we've seen in a decade.
So here's how – and why – to do it…
The Smart Money Finds Gold Is "Undervalued"
A recent survey by Bank of America Merrill Lynch shows a small majority of money managers consider that "gold is undervalued" around $1,155 an ounce.
The survey asked 150 top fund managers worldwide with about $400 billion under management.
While the bullish majority is just 1% ahead of the bears, the shift itself is nonetheless impressive.
According to Merrill, the last time sentiment was bullish dates back to 2009, just before gold began an impressive two-year 90% run-up.
Interestingly, this sentiment has also begun translating into action, at least for some.
In Q1, Canadian mutual fund company CI Investments acquired a massive 6,117,900 shares of the SPDR Gold Trust ETF (NYSE Arca: GLD). That boosted CI's position by about $700 million to roughly $735 million in total to become CI's largest position, representing about 7.5% of CI Investments' portfolio at the end of the first quarter.
Even Swiss banking giant Credit Suisse added over 4 million shares to its own position, as did Blackrock Group, Morgan Stanley, and Lazard Asset Management, all of whom are multi-asset managers rather than precious metals specialists.
The "Dumb Money" Is Massively Shorting Gold
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.