Monday, October 4, 2010

Super Rich Buying Gold By The Ton

The world's wealthiest people have responded to economic worries by buying gold by the bar -- and sometimes by the ton -- and by moving assets out of the financial system, bankers catering to the very rich said on Monday.

Fears of a double-dip downturn have boosted the appetite for physical bullion as well as for mining company shares and exchange-traded funds, UBS executive Josef Stadler told the Reuters Global Private Banking Summit.

"They don't only buy ETFs or futures; they buy physical gold," said Stadler, who runs the Swiss bank's services for clients with assets of at least $50 million to invest.

UBS is recommending top-tier clients hold 7-10 percent of their assets in precious metals like gold, which is on course for its tenth consecutive yearly gain and traded at around $1,314.50 an ounce on Monday, near the record level reached last week.

"We had a clear example of a couple buying over a ton of gold ... and carrying it to another place," Stadler said. At today's prices, that shipment would be worth about $42 million.

Julius Baer's chief investment officer for Asia is also recommending that wealthy investors park some of their assets in gold as a defensive stance following a string of lackluster U.S. data and amid concerns about currency weakness.

"I see gold as an insurance," Van Anantha-Nageswaran said. "I recommend 10 percent as minimum in portfolios and anything more than that to be used for trading purposes, to respond to short-term over-bought or over-sold signals."

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  1. Should paper currencies including the $ implode, as is feared by many, it is not only survivalists that save a little gold.
    The rich also take out TRANSPORTABLE international insurance to insure their continuing economic dominance under a possible future gold or gold backed currency,in order to rebuild a system suitable for themselves.
    A cheesed off , impoverished by the elite ,future radical movement, might not be to happy at the prospect of being ruled again by the old elites money power .
    The said elite , with an old store of wealth ,gold in their pockets ,being seen as the looters that impoverished the people.

  2. 8:26, I hope you're correct.
    I've been amassing gold for many years, and I wouldn't mind being catapaulted to 'elite' status.

  3. Buy silver, as the precious metals travel together.
    Buy silver coins and bury them safety away in your yard.
    If you need some cash, you can sell them easier than buillion gold bars which still will need a spot price and commodity trader, shipper and third parties involvement at the end of the day.

    The spread (profit) of silver has a better upside, even if gold climbs to 2k per ounce.

  4. Dare I point out that there are clear signs that the end is finally coming near now. The mess is accelerating ever more and it was about 3 months ago that key analysts, such as shadowstats predicted a collapse within 6 months...3 months ago. A war is about to break out that will transcend all continents. Thanks to modern technology, no one will be spared attack. Metal may be of value at some points along the way, but to summarize an old proverb, it's better to have the food than the gold, since the guy with the gold will only need it so he can try to try to buy your food.

  5. Some super poor are buying silver, like me.

  6. I seriously don't believe having gold or silver will do you any good if the world is going to collapse. What good will bricks of gold do you if you are trying to buy food? Who is going to be stupid enough to give you food that cannot be replaced with a hunk of metal?
    if there were no supplies of food and you had a barrel of it would you give it up for metal and then let yourself and your family starve to death sitting on a gold throne? Don't be silly.

  7. What Could Derail Gold?


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