Smart Money Diversifying Into Gold As BREXIT Fuels Market Uncertainty
By: Goldcore
GoldSeek.com
Tuesday, 31 May 2016
BREXIT gold diversification is taking place due to concerns about the BREXIT vote on June 23rd as “smart money” institutions, banks and investors diversify into non negative yielding gold.
One of the oldest private banks in the world, Berenberg, established in 1590 and with assets under management of €40 billion said in an interview that demand for precious metals should see prices “rebound by as much as 40 percent in the next two years to a level last seen in October 2012” according to Bloomberg:
Joh. Berenberg Gossler & Co. plans to increase its holdings of gold and other precious metals, betting that demand will be lifted by uncertainty surrounding the outcome of the U.S. elections and the vote on the U.K.’s membership of the European Union.
Chief Investment Officer Manfred Schlumberger, who joined the Hamburg-based bank in January, expects gold, silver and platinum markets to rebound by as much as 40 percent in the next two years to a level last seen in October 2012. For that reason, Berenberg plans to double the share of precious metals in its investment portfolio to about 10 percent in the weeks ahead, he said. The company manages about 40 billion euros ($45 billion) of assets.
“People used to go for 10-year German government bonds or treasuries, but as they don’t offer any yield, more investors will consider buying bullion,” Schlumberger, 58, said in an interview. “It will be a segment that will benefit from political uncertainties like Brexit or a possible Donald Trump election victory.
Schlumberger is targeting an entry-level price of between $1,200 and 1,230 an ounce.”
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