Hambro: Gold should be trading above $2,500

BlackRock's Evy Hambro, manager of the £2.8bn Gold & General fund, said gold should be trading about 30% above its current record high, taking inflation into account.

Following widespread loss of confidence among investors fretting about the state of the eurozone and the health of the US economy, gold tested new highs last week, soaring above $1,800. The price of the precious metal has rocketed 24% since the start of the year alone, and over longer time periods has outstripped most other investments. Despite the most recent jumps, a range of commentators have tipped the precious metal to climb further, with J.P. Morgan backing it to hit $2,500 by year end. Hambro said: “Gold today is trading below its inflation-adjusted price. If you go back to ...