The case for gold seems to be solid and with a plethora of good arguments in favor of a future higher price. Yet, the dollar persists in exhibiting strength and gold is struggling at the moment with a possible support level circa $630. Do we have a case of mistaken identity here or simply refusal to participate into a good argument?
One postive aspect for gold lately is that many money managers recommend a small, albeit higher than past, gold allocation in their investment portfolios. John Hathaway of Tocqueville Funds said that if the current 2% institutional investment allocation increases to 6% there will be a sea change for gold price. Very reputable investment firms in Asia have been recommending up to 30% gold allocation for their institutional clients and most investment advisors in the US think at least a 10% allocation to be reasonable.
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