"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."
I look at this from the alternative viewpoint of the run-of-the-mill everyday investor, who may not have $50 million in cash to put into gold or precious metals, but rather must turn to other high-yield stock choices that has nowhere near the security that putting money into physical metals. Although signs point to a double-dip recession, it seems only those who are super-wealthy are those who are safe.
while gold is a safe investment in troubled economic times, im not sure that investing this late in the recession will yield results that investors are expecting. This of course assumes that the recession does not continue. If the recession continues holding gold will prove very lucrative. When a major bank advises investors to hold gold, it means they expect the recession to get worse before it gets better.
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