Private banks move into gold
Monetary supply expected to debase the dollar.
Reuters is reporting that 9 private banks, which control some $6 trillion in assets, are advising their clients to allocate anywhere from 5% to 10% of their portfolios to gold.
The wire service notes that prior to COVID-19, “most private banks recommended their clients hold none or just a tiny amount of gold.” But now they are “channelling up to 10% of their clients’ portfolios into the yellow metal as the massive central bank stimulus reduces bond yields - making non-yielding gold more attractive - and raises the risk of inflation that would devalue other assets and currencies.”
This brought to mind James G. Rickard’s books on currency wars. This former advisor to the CIA recounts how throughout history the wealthy navigated through the financial catastrophes of world wars and other epic crises, through three investments: real estate, fine art, and, yes, gold.
I've been recommending a 10% allocation of assets to gold for years. Looks like wealth managers are finally catching up to reality.https://t.co/3FVCJGR39v— Jim Rickards (@JamesGRickards) June 20, 2020
The news about private banks comes on the heels of Bank of America’s April report called “The Fed Can’t Print Gold.” In the report BofA predicts $3,000 gold within 18 months.
The world’s ultra-wealthy go for gold amid stimulus bonanza