“Wall Street” Recommends Gold

About a week ago, Wall Street recommended buying Gold.  OK, “Wall Street” as a whole couldn’t possibly do that; however, a powerful man on the Street did indeed say he likes Gold.

DoubleLine Capital, a hedge fund with assets under management of $100 billion, is run by Jeffrey Gundlach and was named by Forbes as one of the “Most Powerful People” in 2014.  So when he mentioned gold, we took notice.

While being interviewed by Reuters, Gundlach said that he still had exposure to gold and went on to predict that gold prices would continue to rise because “gold looks cheap compared to markets that have rallied a lot, including bitcoin and including Amazon.”

Since then, Amazon has dropped and Bitcoin has rallied.  Nevertheless, gold is still cheap relative to Gundlach’s metric.

Away from Reuters, Jeffrey Gundlach tweeted his preference for gold against another Wall Street favorite: Bonds.  In the tweet he said: “Copper/Gold ratio soaring to the high of the year! Not good news for the ‘1.50% 10-YR crowd.’ Neither is the 10-YR Bund holding above 50 bp.”

Isn’t it time you invested in Gold as well?