What makes them even more dissatisfied is that investment banks have changed their faces in the face of falling gold prices.
For example, recently, Francis blanch, head of global commodity and derivatives research at Bank of America, made it clear that he had made a significant change in his forecast for gold in 2021, and no longer expected gold prices to hit $3000 / oz.
Although Francisco blanch believes that active global fiscal policy and monetary easing will still push gold prices to US $2000 / oz, more and more family offices will no longer follow the advice of investment banks to support the gold price and increase their gold positions as much as they did four months ago. Jim Wyckoff, a senior analyst at kitco metals, said that even some family offices could not bear the negative return on gold assets, so they reduced their holdings of gold and returned to U.S. stocks.
The reporter learned that the domestic high net worth crowd to copy bottom gold interest is also not high.
During the past three weeks, when global gold prices have fallen by more than $150 / oz, occasionally one or two customers have bought two or three hundred grams of gold bars at one go. Many gold shop owners revealed to reporters. Behind this, perhaps it is the psychology of buying up rather than falling that has once again influenced the gold trading mentality of high net worth people in China.
The head of precious metal business department of a joint-stock bank disclosed to reporters that recently, there are not many high net worth customers who copy the bottom gold in the paper gold market. The reason is that the progress of vaccine research and development and the elimination of uncertainty in the US election have made these investors reluctant to bet on the bottom and rebound of gold price.
Reduction of family offices in Europe and America
Many reporters have learned that many European and American family offices have begun to reduce their gold positions in the face of gold prices falling below the $1800 / oz integer level.
Family offices have always believed in the investment rules of buying gold in troubled times. We mainly focus on the value preservation function of gold in the period of economic uncertainty. But now, even though the epidemic situation in Europe and America continues to worsen, risk assets such as US stocks and bitcoin are still reaching new highs. On the contrary, traditional safe havens such as gold continue to decline, which makes them have to re-examine the value preservation function of gold. He told reporters. Even some family offices in Europe and the United States believe that bitcoin is more valuable than gold at present. The reason is that more and more young people regard bitcoin as the first choice of risk aversion investment, which makes bitcoin perform much better than gold during the aggravating epidemic in Europe and America.
It is worth noting that there is still dissatisfaction with the investment banks steering the wheel behind the European and American family offices bargain hunting and gold reduction.
Since the outbreak of the epidemic at the beginning of the year, many European and American family offices have continued to increase their gold positions, which is largely affected by the support of gold prices by investment banks. For example, many investment banks, such as Bank of America, believe that the gold price is expected to challenge us $3000 / oz, driving many European and American family offices to increase their gold positions in the past three months. However, with the Bank of America and other investment banks changing their words due to the smooth development of vaccines and other factors, they said that it was difficult for gold prices to stand at 3000 US dollars / oz. these family offices could only express their dissatisfaction by reducing their holdings.
The Asia Pacific chief representative of a large asset management institution admitted that compared with institutional investors, many European and American family offices have rather radical investment styles - they prefer to see high short-term returns.
In line with the reduction of gold holdings in European and American family offices, domestic high net worth people are also not interested in bottom gold.
In the past three weeks, its rare to see high net worth customers buying several 100g investment bars at one go. A number of gold store managers revealed to reporters that although some high net worth customers repeatedly asked about the decline in gold prices, there were only a few who actually took the bottom.
A gold store manager told reporters that by communicating with some high net worth customers, he found that buying up rather than buying down is affecting their gold trading mentality. Some high net worth customers hope to wait until the gold price falls below 1750 US dollars / ounce before considering the bottom. Moreover, they are quite sure that the gold price will continue to fall. For example, the uncertainty of the US election is eliminated, the vaccine research and development is smooth, and the United States is about to start New fiscal stimulus, etc., will put a lot of pressure on gold prices.
A number of executives of precious metal business departments of banks believe that in the past month, there are not many rich people who have copied gold through paper gold. Even though some rich people are good at betting on the rise of gold price during the depreciation of the US dollar, they also choose to wait and see.
Bob haberkorn, a senior commodity broker for rjo futures, pointed out that the low enthusiasm of Chinas high net worth customers for gold would also restrict the stability and rebound of global gold prices to some extent. For a long time, many European and American investment institutions have been paying close attention to the buying enthusiasm of Chinese investors in paper gold, gold ETF and physical gold, so as to judge the rise and fall of gold price in the future.
At present, the lack of interest of Chinese investors in bottom gold may drive them to increase their short selling of gold in the short term, which will make the European and American family offices more dissatisfied with gold investment losses and increase the reduction of their holdings.