Gold is terribly undervalued, American billionaire says

Billionaire and investor Paul Singer warned that shares can drop to its half, compared to its February highs

He claims that gold is currently one of the most undervalued assets.

According to Singer, price of the precious metal could double, due to “fanatical debasement of money by all of the world’s central banks”, he said to Financial Times. His hedge fund Elliott Management is one of many betting big on gold.

Gold’s price is currently up 12% year-to-date. Recently, it grew over $1,750 per ounce, which didn’t seem to be too far from its record high $1,800 per ounce, a value what was reached in second half of 2011.

Investor Paul Singer, whose fund manages about $40 billion in assets, wrote to investors that gold is currently one of the biggest assets for evaluation. “It’s very undervalued against its fair value,” Singer wrote. Gold’s price has been growing since August 2018, when it bounced off $1,200 per ounce. Gold was testing the level of $1,000 between 2015 and 2016, but did not drop under the level.

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