Legendary value investor Jean Marie Eveillard – who oversees $50 billion at First Eagle Funds – told King World News today:
In this environment, gold is far from being over-owned. Rachel Benepe, who runs our gold fund here at First Eagle, she was telling me the other day that if you take global pension funds, not just in the US but in the rest of the world as well, they only have .4% of their assets that are invested in gold. So gold is far from being over-owned….
Gold today should be seen as a currency, none of the major currencies being appealing. The are an enormous amount of debt claims throughout the world, which by comparison with gold at $1,800, the entire amount of gold above ground equals ten trillion dollars, including incidentally half of that being in the form of jewelry.
By comparison with the ten trillion dollars of gold in the world, the financial claims are much, much higher, so it is still a case of too much paper, most of it dubious and I believe too little stuff, stuff being gold.
Gold will continue to rise as long as monetary authorities continue to do what they have been doing, which is an automatic reflex in a pure paper system, which is to print more money.
This confirms Jeff Clark’s's theory.