Fresh optimism on gold, thanks to 'triple bubble in stocks, bonds and real estate’

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Fresh optimism on gold, thanks to 'triple bubble in stocks, bonds and real estate’ GlobeInvestor

For many wealthy people, gold’s shine comes from its coveted, safe-haven status amid uncertain times. While its price has been in the doldrums since hitting a record high of nearly US$2,000 an ounce in 2011, the metal regained some lustre last fall when it outperformed U.S. stocks during the sharp market downturn.

Interest in gold has picked up mainly “among entrepreneurs who are typically out-of-the box thinkers,” says Mr. Barisheff, referring to his firm’s clients. “They are concerned about the economy, [rising] debt and where the stock market is.”, says it is tough to persuade investors to embrace gold when stocks are climbing. He expects the recent market rebound will be short-lived, and a devastating market crash looms that will send gold prices surging.

Toronto-based online precious-metals dealer Sprott Money Ltd. has also seen more high-net-worth investors and family offices showing interest in buying gold bullion recently, says Christopher Gibson, who is vice-president of sales. But individuals who acquire bullion bars should be buying and storing them for at least three to four years because there are costs to buying and selling, says Mr. Gibson. Sprott Money will buy back gold from individuals if it can be verified to be pure or was sold by that firm or another credible institution, he adds.Mr.

Mr. Thompson says he is “very positive on gold” and has been advising clients to buy it because sales of U.S. gold coins are at multi-year lows – not dissimilar to 2007, the year preceding the financial crisis.

 

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