The strategic case for owning gold remains strong, according to analysts at Goldman Sachs. They point to such factors as political uncertainty, recession fears and other worries among the global elite.
Data from Goldman research showed that owning the physical metal seems to be the global elite’s preferred way to hedge against tail events. Physical buying of gold has increased at a rapid pace in the past three years, statistics showed.
"Since the end of 2016 the implied build in non-transparent gold investment has been much larger than the build in visible gold ETFs (Exchange-traded funds)," Goldman said in a note sent to clients and seen by Yahoo Finance.
That simply means that for those including gold in their luxurious bunkers, demand for which has been growing at a fast pace, owning bullion is a must.
"This [data] is consistent with reports that vault demand globally is surging," Goldman said.
Gary Lynch, general manager of Texas-based Rising S Company, told CNN that 2016 sales for their custom high-end underground bunkers grew 700 percent compared to 2015, while overall sales have grown 300 percent since the November US presidential election alone.
"Political risks, in our view, help explain this, because if an individual is trying to minimize the risks of sanctions or wealth taxes, then buying physical gold bars and storing them in a vault - where it is more difficult for governments to reach them - makes sense.”
The investment bank added: "Finally, this build can also reflect hedges by global high net worth individuals against tail economic and political risk scenarios in which they do not want to have any financial entity intermediating their gold positions due to the counter-party credit risk involved."
via Russia Today
Editors note: Owning gold bars in a private bunker in the ground has its own set of risks. For investors and even high net worth (HNW) and ultra high net worth investors (UHNW), to hedge worst case scenarios, it makes sense to take delivery and possession of a small amount of gold bullion.
However, owning gold coins and bars in our Secure Storage program is more prudent, given the nature of ownership, the competitive pricing and all important liquidity, the safer and safest jurisdictions and the state of the art vaults with the world’s leading vaulting companies as provided by GoldCore.com
GOLD PRICES (USD, GBP & EUR - AM/ PM LBMA Fix)
10-Jan-20 1548.80 1553.60, 1185.45 1189.28 & 1395.78 1399.64
09-Jan-20 1547.85 1550.75, 1186.89 1188.49 & 1393.99 1396.14
08-Jan-20 1582.85 1571.95, 1206.13 1197.35 & 1421.87 1412.87
07-Jan-20 1566.50 1567.85, 1190.85 1197.05 & 1402.80 1406.52
06-Jan-20 1576.85 1573.10, 1198.09 1197.29 & 1408.44 1406.51
03-Jan-20 1547.40 1548.75, 1182.37 1184.48 & 1389.57 1387.99
02-Jan-20 1520.55 1527.10, 1151.36 1161.51 & 1358.46 1366.91
31-Dec-19 1523.00, 1157.78 & 1358.06
30-Dec-19 1511.50 1514.75, 1152.37 1152.57 & 1350.22 1351.91