GENEVA, Mon Oct 4Â (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.
“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 signal.”
Dr. Pinna says:
The Super-Rich people of the world have many financial advisors.Â They do not make a decision without a consultation with a specialist. As in medicine, this is the safest way to undertake a complex procedure.
Today, the economy of the World is changing dramatically. Countries that were once poor, such as China and India, are becoming rich. Countries that were rich, such as the U.S. and Europe, are becoming poor.
The people that are becoming poor are feeling psychological pain and they are screaming at their governments to do something. But, we know that there is nothing to do.
What is taking place today had its roots planted fifty years ago.Â The changes are inevitable.
Those who were rich will become poor and they will revolt from their present form of society. There will be chaos and violence in the streets. The Super-Rich know this and they are preparing to run away.
The only currency they can take which is accepted around the world, both in the West and in the East, is GOLD.
What will you do?