Is Gold Undervalued?

The gold price has risen year to date - but one multi-manager is saying the real asset looks cheap and has invested on a value basis

Karen Kwok 14 June, 2017 | 4:29PM
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The gold price has rallied this year – after hitting a six-year low in December 2016. The gold price is now at $1,266 per ounce, up from $1,062 on December 1. Last time the price of gold was that low was in October 2009 when it dropped to $1,043.

The uptick in the value of the yellow metal suggests that there is more demand in the market. Gold is traditionally held as an insurance against losses elsewhere; when economic outlooks look clouded, or there is great volatility in equity markets. The finger this time around could be pointed at the political uncertainty across developed markets; Trump, Brexit and European elections.

But for Stan Verhoeven, co-lead portfolio manager, Multi Asset Factor Opportunities at NN Investment Partners, his preference for gold is for a different reason: value.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Karen Kwok

Karen Kwok  is a Reporter for