Wednesday, September 5, 2018

While U.S. advisers tell clients that gold is 'dead money', Chinese investment brokers are telling their rich clients to buy the metal now

Gold investment today is certainly a 'tale of two hemispheres', where nations like India, Russia, and China are accumulating the metal at a record pace while over in the West, 95% or more of the population does not even know that gold is of any real value.

And perhaps this dichotomy can be no better explained than through the recent price implosion of gold over the past few months where investment brokers in the U.S. are going out of their way to dissuade their clients to not even consider buying the metal while over in China, brokers are actually promoting their rich clients to buy more gold.

Advisers to Asia’s super rich think their clients should put more of their money into gold, taking advantage of price declines to buy the yellow metal amid volatile global markets and US-China trade tensions, a new report said. 
A survey of these advisers found a preference for gold holdings amounting to 5 per cent to 10 per cent of total assets. That is up from an earlier recommendation of 3 per cent to 5 per cent, according the report, “Going for Gold”, which was released on Wednesday by US financial services firm INTL FCStone. 
Most advisers in the survey – 62 per cent – said their clients should or maybe should increase their weighting in gold, versus 38 per cent who said they should not. The survey was of 174 private banks, family offices, wealth management advisers and other market experts in Asia. – South China Morning Post
So while U.S. investors continue to put their money in overvalued stocks and in bonds offering yields 7% lower than the rate of inflation, the Chinese are moving their wealth into the second most undervalued asset class in the world, and which is recognized worldwide as the one true form of money and wealth protection.


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