Gold remains in the $1,300 per troy ounce range. Is it a buying opportunity? Yes, says one contrarian fund manager.
Two years ago, gold was above $1,900 per troy ounce. Many were predicting gold would easily break the $2,000 mark and then some. After all, the Federal Reserve Bank was buying bonds at a breakneck pace, adding dollars into the financial system.
Fast forward 24 months later. Not only did the Fed up its bond-buying to $85 billion per month back in December, they’ve also decided not to taper it after hinting they’d do so earlier. So what does go do? It’s down $600 from its all-time highs.
In an interview with Talking Numbers, noted contrarian Bill Fleckenstein of Fleckenstein Capital says he thinks gold is headed “higher and quite a bit higher… Gold has everything you can ask for going for it and sentiment is incredibly negative. So, I think there isn’t much risk at these prices.”
In the interview above, Fleckenstein spells out his case for gold and why he thinks Fed policy will ultimately doom Americans’ purchasing power.
To see Fleckenstein’s take on what Fed policy means for gold, watch the video above.
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