Welcome to Extreme Investor Network, where we provide you with the latest insights and trends in the world of finance. Today, we delve into the recent surge in gold investments, as hedge funds and other money managers are increasing their exposure to the precious metal.
In a recent analysis by Citi, it was revealed that a staggering 83% of the largest money managers are currently long on gold, making it the consensus among top investors overseeing more than $18 trillion. This comes as no surprise, as gold has been reaching new highs in response to reaccelerating inflation. Gold futures settled at a record high above $2,400 an ounce this week, marking its third straight week of gains.
Investors are turning to gold as a safe-haven asset amid rising geopolitical risks and inflation concerns. The limited supply of gold makes it a popular choice for investors looking to hedge against inflation. James Steel, chief precious metals analyst at HSBC Securities, attributes the recent rally in gold prices to a combination of safe-haven purchases and hedge fund activity.
Professional speculators are also increasing their exposure to gold, with net-long positions in gold futures and options hovering near the highest level since 2020. David Neuhauser, founder of Livermore Partners, has increased his weighting in gold to over 20%, including gold miner stocks and physical gold. Neuhauser believes that gold will continue to attract investors worried about monetary disorder and debasement, with a price target of $3,000 over the next few years.
Renowned investor David Einhorn of Greenlight Capital has also made gold a significant part of his portfolio as a defensive play against a potential market downturn. Einhorn owns the popular SPDR Gold Trust fund (GLD) as well as physical gold bars. Deutsche Bank has raised its gold price forecast to $2,400 an ounce by the year end and $2,600 by the end of 2025, citing sustained investment inflows as the driving force behind higher prices.
As the trend of increasing gold investments continues among hedge funds and money managers, it is clear that gold remains a valuable asset for investors seeking to protect their wealth in uncertain times. Stay tuned to Extreme Investor Network for more updates on the latest investment trends and opportunities in the world of finance.
