What Fund Managers Think About Gold

A recent global fund manager survey shows an interesting change in the way experts look at gold. The survey asked fund managers whether they believe gold is overvalued or not. When most fund managers think gold is overvalued, the survey moves above the zero line. (see the image below)

When it moves below the zero line, it means most of them no longer believe gold is overvalued. In some cases, they even feel that gold may be undervalued.

A Rare Change in Opinion

This kind of change has happened only a few times in the last 20 years. One such period was during 2008 and 2009. Another came in 2016, when gold made a market bottom and then continued to rise over the next few years. A similar view was also seen after the COVID period, when many believed gold was trading below its true value.

Strong View Has Now Changed

From 2024 to January 2026, most fund managers believed that gold was overvalued. That opinion remained very strong for a long time. But now the survey has moved into negative territory. This means that most fund managers no longer believe gold is overvalued. Many now feel that gold may actually be undervalued or at least fairly priced.

What History Tells Us

Looking at past data, this change has often been followed by strong performance in gold over the next few years. Every time the survey moved into negative territory, gold delivered good long-term returns. While history never guarantees future results, these past trends are worth watching.

Should You Invest in Gold?

This survey does not promise that gold will rise immediately, but it does give an important signal. If the opinion of fund managers continues to improve, gold could have more room to grow in the coming years. Investors should always look at different data points before making any investment decision, but this survey may be one useful clue that gold still has potential.