Global super-rich boosting cash holdings and Cold

Dubai’s biggest bank Emirates NBD said the list of favoured investments is topped by gold and cash, and for long-term investment, emerging market equities are assumed to be safe. A well-analyzed hedge fund diversified portfolio and forex combination can provide some of the highest returns in the year.  

The investment officer at the bank said currency in AED and US dollars both yield assets and offer the desired flexibility. 

CEO of Van Eck Associates claimed the top choice for Bitcoin investors this year is gold.  The survey of 4,000 bitcoin investors found the number one investment of the year was the yellow metal. In 2008, gold lost to Bitcoin, and now, it is again gaining. 

Bitcoin was at above $ 20,000; in December 2017, where in the last 12 months, its value increased 25 times; in contrast, gold rallied only 4 per cent. Since its peak, bitcoin has been down 82 per cent, and the yellow metal is 2.5 per cent up. Amidst market volatility, investors claim they lost all liquidity in commodities. 

The founder of investment club Tiger 21, Michael Sonnenfeldt, hinted the super-rich are increasing their cash holdings this year. They are cutting back on some real estate investments and trying to get short-term solutions. They are also reducing exposure to equities over higher volatility and irregularity in the geopolitical and economic situations. 

They doubt government policies; hence, unique trends such as investment in cannabis land are increasing. High net worth individuals are known for investment in precious metals, but there has been a long slump in such investments in the last eight years.

Gold gains in Feb

Investors seeking alternatives to volatile stock markets are investing in the yellow metal, which was at an eight-month high at $1316 per ounce at the start of Feb. 2019. Fed is expected to hold rates for some time, and the demand among private buyers is expected to increase - as per the reports from Metal Focus which indicated an increase in New Year sales of American gold eagle coins. 

Analysts believe the stable interest rates, currency volatility and geopolitical factors can continue to create uncertainties in the market, leading to an increase in metal demand. 

Silver up 3.6 per cent

Silver was up 3.6 per cent, where it reached $17.99, and platinum fell $30 to an average of $851 an ounce. Last week, it was at $818 per ounce. One of the most bearish forecasts for palladium was made by the French investment bank Natixis' Bernard Dahdah, which claims the metal will reach $900 an ounce. 

With slow changes in the interest rates and UKs withdrawal agreements in the process, there are many presumptions where lawmakers are expecting alternative arrangements in the markets and EU compelling on re-talks. One of the fast-growing US asset managers, GranitShares, claimed its growth in 2018 was supported by a gold-backed ETF. 

In 2018, the yellow metal held a strong struggle against the dollar and with the increase in monetary policy tightening by the US, the economic growth may remain weak, increasing pressure on the equity markets. Precious metal performance is directly related to equity and inversely to the dollar. 

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