Super-rich investors buy gold by ton

[321AU]

(Reuters) - The world's wealthiest people have responded to economic worries by buying gold by the bar -- and sometimes by the ton -- and by moving assets out of the financial system, bankers catering to the very rich said on Monday.

Fears of a double-dip downturn have boosted the appetite for physical bullion as well as for mining company shares and exchange-traded funds, UBS executive Josef Stadler told the Reuters Global Private Banking Summit.

"They don't only buy ETFs or futures; they buy physical gold," said Stadler, who runs the Swiss bank's services for clients with assets of at least $50 million to invest.

UBS is recommending top-tier clients hold 7-10 percent of their assets in precious metals like gold, which is on course for its tenth consecutive yearly gain and traded at around $1,314.50 an ounce on Monday, near the record level reached last week.


http://www.reuters.com/article/idUSTRE6932NR20101004

[jimineez]

1 ton = 2000 pounds = 29,166.67 troy ounces x $1,315/ounce = $38,354,171 .... over thirty eight million dollars in one transaction? Somehow I don't think that has happened very much lately, but maybe once or twice, who knows.... Seems more likely that maybe a few own a ton, but didn't buy it all at once.

[GodspeedMetals]

1 ton = 2000 pounds = 29,166.67 troy ounces x $1,315/ounce = $38,354,171 .... over thirty eight million dollars in one transaction? Somehow I don't think that has happened very much lately, but maybe once or twice, who knows.... Seems more likely that maybe a few own a ton, but didn't buy it all at once.

Agreed. But if you're really rich... you can't be bothered with "above ground inventory"... Bill Gates bought Apex Silver mines some 10 years ago.

"We loved it so much, we bought the company." :party30:

[Mr. Shiny]

1 ton = 2000 pounds = 29,166.67 troy ounces x $1,315/ounce = $38,354,171 .... over thirty eight million dollars in one transaction? Somehow I don't think that has happened very much lately, but maybe once or twice, who knows.... Seems more likely that maybe a few own a ton, but didn't buy it all at once.

Why is this so unbelievable to you?
In 1974, a certain investor bought over 1885 tons of sludge for ~$160 million and shipped it to Switzerland for storage at 0.5¢ per ozt per month or $3.3 million per year just for storage.
That was in 36 year old dollars, what makes you think someone isn't buying a measly $38 million dollar ton of Au now?

[Metalophile]

I wonder how many tons Soros has stuffed in his mattress.