Eight reasons why gold is still cheap

Gold's recent slump after its stellar ascent has scared many funds out of the market. But they may live to regret it, says Daniel Sacks of Investec Asset Management - there are at least eight good reasons to keep buying gold.

After a near parabolic move up, gold has fallen from its highs, and many funds have recently mass evacuated from the metals markets.

Why? Fundamentally gold had risen further and faster than many had foreseen. Prices clear markets and gold has a larger component of immediately price-sensitive supply and demand than most other commodities.

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