Bloomberg News: Buy Gold 'Right Here and Now,' Top Wealth Manager Says

Article by David Ingles and Ranjeetha Pakiam in Bloomberg News

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 AG’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, chief executive officer at Sprott Inc., said in a note, referring to recent moves.

Given additional quantitative easing from central banks “you should see a weaker dollar over the next 12 months,” Gordon said. “On the back of that, you’ll see real rates go back into negative territory,” he said, adding: “That will be a potent power for gold.”

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