Dream Warrior

When the rich start to panic...

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When the rich start to panic...

Post  Manahuna on 05.10.10 19:19

Super-rich investors buy gold by ton

(Reuters) - 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.

http://www.reuters.com/article/idUSTRE6932NR20101004


Europe’s central banks have all but halted sales of their gold reserves, ending a run of large disposals each year for more than a decade.

http://www.cnbc.com/id/39376353

The secret of gold is simple.

2000 years ago an ounce of gold would buy 300 loaf of bread as mentioned in roman literature,

just as it does today. Currencies can loose their value but gold always retains it's purchasing power.

The super rich start to panic and buy tons of gold,

They are getting cold feet, must be more behind it than just the ongoing currency wars. Rolling Eyes
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Manahuna

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