Wednesday, December 11, 2019

The Goldman Sachs Bullish Case for Gold: The World's Super-Rich Are Hoarding Physical Gold

In a note to clients published over the weekend, analysts at Goldman Sachs outlined why the strategic case for owning gold remains strong. The key for them is that the super-wealthy are accumulating physical gold.

"This [data] is consistent with reports that vault demand globally is surging," according to Goldman.

The report went on:
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.
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.
If you don't own any physical gold I hope this spurs you to get some.

I am very bullish on gold. In the EPJ Daily Alert, I write that I expect the gold price to eventually break to new all-time high prices.


No comments:

Post a Comment