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Buy Gold ‘Right Here and Now,’ Top Wealth Manager Says

Published 03/20/2020, 06:09 AM
Updated 03/20/2020, 08:15 AM
© Reuters.  Buy Gold ‘Right Here and Now,’ Top Wealth Manager Says

© Reuters. Buy Gold ‘Right Here and Now,’ Top Wealth Manager Says

(Bloomberg) -- Now’s the time to buy gold, according to one of the world’s leading wealth managers, which flagged bullion’s prospects after the haven lost out to the dollar in recent weeks as the pandemic roils markets.

“When I think about what would I buy in the right here and now, I would be buying gold,” Wayne Gordon, executive director for commodities and foreign exchange at UBS Group AG’s wealth-management unit, told Bloomberg TV. Prices would appreciate over three to six months, according to Gordon.

Bullion is set for back-to-back weekly losses for the first time since September after the dollar hit a record, although its drop was pared Friday as investors took stock of the outlook for the global economy, the spread of the disease, and looser monetary policy. With deep losses in risk assets this month, some investors have been forced to sell gold to raise cash. A similar pattern -- losses at times of extreme market stress -- was seen in bullion at the onset of the global financial crisis in late 2008, before it went on to peak in 2011.

Gold “provided what it should during times of crisis, a form of insurance to cash in when liquidity was required,” Peter Grosskopf, chief executive officer at Sprott Inc., said in a note, referring to recent moves. It’s one of the first assets to be cashed in when leverage is reduced, and long-term investors not subject to margin pressures will be rewarded owning gold at this time, he said.

Gold traded 2.3% higher at $1,505.21 an ounce at 9:45 a.m. in London as the Bloomberg Dollar Spot Index fell after an eight-day rally. The metal is down 1.6% this week after an 8.6% fall last week, the most since 1983. Earlier this month, it topped $1,700 to hit the highest level since 2012.

Given additional quantitative easing from central banks “you should see a weaker dollar over the next 12 months,” Gordon said. “On the back of that, you’ll see real rates go back into negative territory,” he said, adding: “That will be a potent power for gold.”

Latest comments

Gold is lame as an investment. Got money to invest, buy stocks at a deep discount
The only stocks worth buying are cash rich gold producers
bool sheet, buy things that are fighting the virus, don't follow these MISERS
1352 first.
Sure
the author says the price of gold will go down because people will be cashing it in for dollars so they can buy stuff, meet margin calls, etc. then it will take 3 to 6 months to rise. Obviously he is thinking long-term compared to the current crazy 25 and 30% swings in individual stock prices
Rhe same expert who said 2 weeks ago that it will be 1800-2000 . Do opisite they say and you will be fine
Gold will increase step by step .. with lots of downfalls .. if you wanna get a higher profit with min effort, then do fx with both sell & buy actions simultaneously .. this is the comment of today .. 👍 on the other hand, watch out for your margins
a ploy to lure buyers!
Tell that to the illogical dollar and market.
Why is the USGovt debt including all obligations is $200T
No one said anything when prior admin bailed out banksters for $16 Tril
Trump's Wall Street bailout will add another $15 trillion to America's $25 trillion National Debt.... Russia, Germany, Denmark, Norway, Switzerland, have no debt....
How much gold does Denmark and Norway have? They will see hyperinflation soon, on life support for a little while and then. Boom.
- Our $25 trillion National Debt was created by Reagan, Bush, and Trump...
- 100% of government money in Denmark and Norway goes to working class... 100% of government money in America goes to billionaires and Israel....
What's the gold silver ratio? Gold's OK, silver will rocket!
Gold is money when money fails
So the dollar has been managed down to 1/1500th of an ounce of gold. Great job FED.
it's the other way around... I can still buy a can of corn for the same dollar
and it wasn't the Fed, it was people like you
I'd say it's been on a very good trajectory since $250 for a money cash component in your portfolio
what a load of *** gold proven to be "heaven safe" nightmare and crashed by 13% along with the rest markets
Gold was over-hedged so it fell. Where else is there to run? Treasurys? Overinflated Property? Crypto?Gold is still the best option.
So what you are actually saying is that paper gold is just another stock
yes, paper gold is like a stock
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