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UBS recommends buying gold immediately

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UBS says you should buy gold now Description video: SINGAPORE — Investors should be putting their money in gold now, as it represents a \”very good hedge\” ahead of risk events such as the U. S. election, UBS Global Wealth […]

UBS says you should buy gold now

Description video:
SINGAPORE — Investors should be putting their money in gold now, as it represents a \”very good hedge\” ahead of risk events such as the U. S. election, UBS Global Wealth Management told CNBC.\”We like gold, because we think that gold is likely to actually hit about $2,000 per ounce by the end of the year,\” according to Kelvin Tay, the firm’s regional chief investment officer, on Tuesday.\”And gold has certain hedges to it,\” Tay said. \”In (the) event of uncertainty over the U. S. election and the Covid-19 pandemic, gold is a very, very good hedge. And its recent weakness represents a great entry point for investors,\” he added, speaking to CNBC’s \”Squawk Box.\”Gold prices have shot to record highs this year — and surpassed $2,000 per ounce for the first time in history. Recently, however, prices have dipped again and last traded at around $1,880 per ounce as of Tuesday afternoon during Asia hours. The precious metal is also attractive due to the low interest rate environment, Tay pointed out. If interest rates stay low as the Fed has indicated, the opportunity cost of holding gold — a non-yielding asset — will be \”quite low,\” he added. That’s because investors are not forgoing interest that would be otherwise earned in yielding assets. Tay also recommended that investors put some money into Chinese government bonds as they are set to be included in major index provider FTSE Russell’s World Government Bond Index. The inclusion, from October 2021, is set to bring billions of dollars of inflows into China. Tay pointed out that Chinese government bond yields, at 2.5%, are higher than other regions, compared to U. S. yields at 0.6% and European yields at largely negative levels.\”This is really high returns for a very good quality government with very strong balance sheets,\” he said.\n\n\nAll data is taken from the source: http://cnbc.com\nArticle Link: https://www.cnbc.com/2020/09/29/investing-in-gold-buy-gold-as-prices-weaken-says-ubs-wealth-management.html\n\n\n#gold #newstodayusa #cnnnewstoday #newstodaymsnbc #newstoday #bbcnewstoday #

UBS recommends buying gold immediately

Investors should invest their money in gold now, as it represents a “very good hedge” before risky events such as the US election. UBS Global Wealth Management reported this to CNBC.

«We love gold because we think that by the end of the year gold is likely to hit around $ 2K an ounce.», – said on Tuesday the company’s regional investment director Calvin Tay.

«And gold has protective properties, Tay said on CNBC. – In case of uncertainty about the US elections and the Covid-19 pandemic, gold is a very, very good insurance. And its recent weakness provides an excellent starting point for investors.».

UBS recommends buying gold immediately

The price of gold this year has reached record highs – and for the first time in history, exceeded $ 2,000 per ounce. Recently, however, prices have dropped again and last traded around $ 1880 an ounce on Tuesday..

The precious metal is also attractive due to low interest rates, Tay noted..

If interest rates remain low, as the Fed promises, the opportunity cost of owning gold – a non-profitable asset – will be «quite low», he added. This is because investors do not give up interest that would otherwise have been received from earning assets..

Tay also recommended that investors put some money in Chinese government bonds as they should be included in the FTSE Russell World Government Bond Index.&# 39; s World Government Bond Index. Inclusion from October 2021 should bring billions of dollars to China.

Tay noted that Chinese government bond yields are 2.5% higher than in other regions, compared to US yields at 0.6% and European bond yields at significant negative levels..

«These are really high returns for high quality government with very strong balance sheets», – he said.