Henderson's Harris dismisses gold 'bubble' fears

Henderson head of multi-manager Mark Harris remains bullish on the long-term prospects for gold and believes ‘undervalued' miners will be the biggest beneficiaries.

He also dismissed fears that a bubble was forming in the asset class as investors piled into the precious metal on fears QE2 will eventually result in higher inflation. The the gold price edged past $1,400 an ounce for the first time earlier this week. Harris says: "In my opinion gold has yet to go into bubble territory, although it is certainly a candidate for such, given the difficulties in valuing it. "Whilst it is a little overbought short-term, it has yet to go up by the multiples we have witnessed in previous bubbles. "It has outperformed for nearly 10 years and is becoming i...