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General Market Commentary
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General Precious Metals
Buy gold 'right here and now', top wealth manager says
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’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, CEO at Sprott, 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.