Gold is your insurance policy, buy it: Bankers to the rich

Singapore: Wealthy individuals should buy gold as the yellow metal has become an attractive investment following last month’s sharp reversal, private bankers in Asia said on Monday.

“Gold at $2,000 is absolutely, potentially on the uptrack, despite the selloff. That is sort of the immediate target,” Marcel Kreis, Credit Suisse’s head of private banking for Asia-Pacific, told the Wealth Management Summit in Singapore.

The $2,000 per ounce level was Credit Suisse’s 12-month target, he added.

Gold rose more than 1 per cent on Monday as falling equities and lingering worries about a debt crisis in Europe drew investors to the precious metal, which posted its biggest quarterly rise this year.

More from Investing

MSMEs are breaking the traditional convention. Look who’s funding them Scale-up your startup without an investor! Here’s how

[caption id=“attachment_98114” align=“alignleft” width=“380” caption=“The $2,000 per ounce level was Credit Suisse’s 12-month targetReuters”]  [/caption]

Spot gold was quoted around $1,655 an ounce around 0840 GMT, up from $1,624 at the start of the Asian day. For the quarter ended September, gold posted a quarterly gain of 8 per cent -its biggest this year, despite a drop of 11 per cent last month.

“It’s your insurance policy if all hell breaks loose,” said Tan Su Shan, head of wealth management at DBS Group , Southeast Asia’s biggest lender by assets.

“We did advise caution closer to $1,900 … but I guess around $1,600 and below would be time to start looking to going back into gold again,” she added.

The Singapore bank was, however, more cautious on other commodities given the cyclical downturn in the global economy, she said.

Reuters