Merrill Lynch says wealthy individuals turning to gold bars for safety in uncertain times

January 10, 2009 by · Leave a Comment
Filed under: Commodities News 

Historically, gold is the safe haven investment from financial and political instability.  Yes, it does not pay interest and that is why in our modern world, it seems to be shunned at every possible turn.  The failing, is that people don’t seem to understand that it is a store of value (wealth) and that is its natural role and has been for at least 6,000 years or more.

Gold does not have any built in liability to anyone, it is rare and it takes work to get out of the ground.  All of these make it so no matter what happens in the real world, no one will be able to tell someone that their gold is worthless and that is what makes it such a great store of wealth.  With the type of fiscal policies government across the globe are running, it should be no surprise that people are looking for this type of safety.

News:

Merrill Lynch has revealed that some of its richest clients are so alarmed by the state of the financial system and signs of political instability around the world that they are now insisting on the purchase of gold bars, shunning derivatives or “paper” proxies.

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