World's wealthiest families buying gold for "catastrophe" portfolios



"We have to explain to our clients, it's not about making money these days, it's about keeping wealth"

Do it like millionaires invest in gold

The world's wealthiest families have embarked on damage limitation rather than seeking to boost their fortunes as financial turmoil erodes their riches, with some so worried they are putting their money in "catastrophe" portfolios.

"We have to explain to our clients, it's not about making money these days, it's about keeping wealth," said Ivan Adamovich, head of the Geneva operations of Swiss bank Wegelin.

With inflation eating away at people's nest eggs and rock-bottom interest rates making living off capital increasingly difficult, many rich people are taking new risks just to stand still, private bankers said.

"We have already inflation higher than interest rates in many markets. ... Unless you take some risk, you will not achieve a level of return just maintaining [wealth]," Pierre de Weck, head of Deutsche Bank's private wealth management business, said at the Reuters Wealth Management Summit in Geneva.

Mr. Adamovich said a model portfolio designed to protect people's wealth in the face of global catastrophe has attracted more interest as financial turmoil spread in recent months.

The "catastrophe portfolio" allocates one third of money to gold, one third to defensive and internationally diversified blue-chip company shares and a third to the debt of ultrasafe developed countries.

Mr. Adamovich said interest in the portfolio is still limited to the most "paranoid" clients but interest is rising, particularly among people who have seen previous episodes of societal breakdown and financial collapse in Europe.

from Blanchard (via Noblenomads)

Get Physical Gold!! See How The Banks Manipulate The Charts.

from noblenomads

There’s a very strong technique that scares off novice investors and traders like crazy. It involves a brief kick at the bottom of a decline in price that extends a little bit past where it leveled out. That can trigger stop-loss orders and just terrify green traders into liquidating what could’ve been profitable positions. The application in the video is geared toward equities, but can be seen just as readily in currencies, especially gold and silver.

First, watch the video – yes, it’s serious despite the title:

With Back-door Dealings, Gold Will Rise Even Higher

by Sy Nejem

I’ve spent some time wondering exactly what the trigger will be for the tides to shift, ending this phase of gold and the Euro’s turn in the global debt crisis, the latter being simply a mirror of America’s 2008 panic. I believe Jim Rickards hit the nail on the head with SDRs being proposed yet again. Every time major financial trauma comes to the forefront, SDRs are pushed a little harder as the solution to all the world’s ills: a substitution for the ailing USD.



While Mr. Rickards has a very strong case, it must be acknowledged that this will not happen overnight. Instead of gold immediately going through the roof when the SDRs are announced, it is very likely that financial markets will initially view such a move as the solution to the Eurozone’s problems. Whether valid or not, if gold is at new records in the high USD$2,000-3,000 range, there is every reason to expect that the metal will tumble 30% or more shortly after an announcement, the drop to be assisted by the same organizations that have been fighting its rise for decades. Eventually, SDRs will be realized for what they are: more worthless paper controlled by yet another set of kleptocratic politicians.

Gold reaching $2,500 to $3,000 is increasing in probability with each passing day. That silly FOMC meeting ought to be the trigger that opens the floodgates. Repo market chicanery will allow for continued back-door bailouts on top of the visible recycling of existing junk asset income and the SDR resurgence will be the hammer that strikes gold for a final attempt at holding the precious metals below the exponential take-off level. Patience is an asset here.

Noble Nomads