Gold Could Gain 30% by Year-End: Fund Manager

CNBC reports that gold could gain $400 or 30% by the end of 2011.

Further, according to Ben Davies, Director and CEO of Hinde Capital:

“…with just 0.7 percent of global assets invested in gold, the precious metal remains under-owned.

“With the end of the gold standard, central banks haven’t had to load up on gold despite big increases in the monetary base. “Governments, they don’t want to see the price of gold going up, because in reality it’s showing that you’re debasing your currency,” he explained.

“Davies argued investors need to ditch the view of gold as a “barbaric relic” and start seeing it as a “real asset”, as it has the positive attributes of both a commodity and money.”

“According to Davies the best way is to invest directly in the physical metal itself, with ideally a third of a portfolio in gold. However, that level may still be too high for some fund managers, in which case he says a good starting point would be around 10 percent.

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