UBP Switzerland - The gold is the final currency
25-11-2010 golden marketAccording to the private Swiss bank Union Bancaire Privée (UBP) the increase of the gold might last another 18 months because nervous investors get overturned to assets that they see like refuge opposite to the fall in the value of the money and more attractive than sovereign bonds of low yield.
Christian Bernard, chief of strategy of investment, pointed out that the clients of UBP and the same institution had destined between 10 and 15 % of his investments in gold during the last 5 years, enjoying strong profit that might spread more as new buyers arrive.
Bernard said:
“We believe that the potential is still not exhausted, we even are not in bubble territory. The costs of marginal production are high, the gold is more difficult to extract and the quality is minor. With the inflation in the United States in the 1 to 2 %, you lose money having cash. The gold is the final currency.”
The UBP clients are still scared by the uncertain panorama for the world economy although many are afraid of having money, where very low yields are more that erased by the inflation, he assured.
Bernard said also:
“The central banks turned into clear golden buyers in 2009 for the first time in 2 decades, adding a significant number of new buyers to the demand source.
If the gold continues the pattern of the bullish market of 1994 - 2006 in the American real estate sector or of the Nasdaq between 1988 - 2000, the prices of the gold might rise during approximately 12 to 18 more months, reaching a maximum from 2.500 to 4.000 dollars.”
The clients are buying physical gold, quotas of funds transables or forwards, and UBP threw recently a fund of administrated gold of an active way for clients who want to exploit the fluctuations in the value of the gold.
UBP had 71.900 million Swiss Francs (72.980 million dollars under administration at the end of June, 2010.
Union Bancaire Privée (UBP Switzerland): www.ubpbank.com
23-11-2010
