Coutts adds gold to client’s portfolio
Victoria Hewitt-Marsh, News Editor
10 Mar 2014, 10:53 a.m.
Private bank Coutts & Co are increasing their client’s exposure to gold from 1%-2% to 3%-4% as tensions remain in the Ukraine and wealth creation continues in China.
Gary Dugan, Chief Investment Officer, has seen considerable demand for physical gold which only accelerated as a result of the tensions in the Ukraine.
"There’s a real robustness to physical demand and the spark that we got from Ukraine took us to a spike, but even before that there was genuine demand from our clients to diversify their wealth into a greater fraction to gold.”
Dugan expects Chinese demand to continue and according to the World Gold Council, Swiss refiners are working night and day to recast bullion into smaller bars for the Asian market.
Last year, Coutts & Co had £29.7 billion of client money under management and their bullish call on gold is in contrast to recent calls made by Goldman Sachs Group and Westpac Banking Corporation.