Gold prices have surged 25% this year, driving demand to the point where Costco limits daily gold bar purchases. HSBC’s survey shows affluent investors doubling gold allocations to 11%. High-net-worth individuals are also buying gold for its safe-haven appeal amid trade war fears and geopolitical tensions.
Investors in Asia and the Middle East have traditionally invested in physical gold due to currency fluctuations and high inflation. Some overseas family offices allocate 5% to 10% in gold or gold-backed investments. J.P. Morgan sees an increase in U.S. clients diversifying from the depreciating U.S. dollar by investing in gold.
For short-term trading, futures are popular, while holding physical gold or ETFs is preferred for long-term investors. Different options come with varying costs and complexities. Some clients prefer unallocated gold in a vault, while others insist on owning specific gold bars for security.
Despite higher fees and minimums, some investors want physical access to their gold bars, even considering burying them. Banks discourage keeping gold at home due to security risks. Swiss Gold Safe offers military bunker vaults in the Swiss Alps for ultimate security, appealing to clients seeking diversification and independence from financial systems.
To attract more investors to gold as a safe haven, geopolitical and economic uncertainties would need to escalate significantly. Steel emphasizes that higher geopolitical risks are necessary for gold to become an even more attractive investment option. Clients from first-world countries are increasingly storing gold in secure vaults in neutral countries.
Read more at CNBC
– The FDA has authorized COVID-19 booster shots for all adults, following recommendations from a panel of experts.
– Consumer prices rose 0.4% in September, slightly lower than expected.
– The Senate has passed a bill to avert a government shutdown, funding the government through December 3.
– Pfizer has announced positive results for its COVID-19 antiviral pill, reducing the risk of hospitalization or death by 89%.: How the rich invest in gold, from fractional bars to Swiss vaults