Fed "green light" and recession fears
Investors reacted strongly to the tariff move. Gold, a familiar safe haven in times of uncertainty, quickly rose in price. Spot gold rose 0.5% to $3,385.07 an ounce on August 7, its highest level in more than two weeks. On the US futures exchange, prices also rose 0.3% to $3,445.1 an ounce.
“Trade and geopolitical uncertainty is fueling demand for safe haven assets like gold and silver,” said Peter Grant, vice president of Zaner Metals, adding that the White House is considering similar measures against other countries that have not signed trade agreements with the United States, a signal that is making markets even more cautious.
Many other major economies are also closely watching Washington's moves, while global investors continue to look to gold as a "fortress asset" during this volatile period.
In the US, data released just showed the number of people filing for unemployment benefits for the first time rose to a one-month high, an early sign that the labor market, which has been a bright spot in the US economy, is starting to slow.
The weaker data has served as a catalyst, reinforcing expectations that the Federal Reserve will soon have to act to rescue the economy. Markets are betting on a near-certain rate cut. The probability of a 25 basis point cut next month has risen to more than 91%, according to CME Group’s FedWatch tool.
Fed officials have not hidden their concerns either. Minneapolis Fed President Neel Kashkari even suggested that a total of half a percentage point rate cuts by the end of the year is a “reasonable” scenario.
For gold, this is great news. Gold is a non-interest-bearing asset. As interest rates fall, the opportunity cost of holding gold (compared to depositing money in a bank to earn interest) falls, making the precious metal much more attractive.
“If US economic data continues to show signs of weakness, expectations of further Fed easing will strengthen and this is generally very positive for gold,” Grant analyzed.
The combination of geopolitical uncertainty and expectations of monetary easing has created a “perfect storm”, pushing gold prices to new heights and attracting the attention of all levels of investors.
Gold prices rose sharply on Thursday, hitting their highest level in more than two weeks as investors sought safe-haven assets after US President Donald Trump imposed an additional 25% tariff on goods imported from India (Photo: Getty).
Inside the Super Rich: The Game of Physical Gold Hoarding
While retail traders are excited about futures and ETFs, tycoons and ultra-high net worth individuals (UHNWIs) are quietly pursuing a different, much more long-term and defensive strategy: hoarding physical gold.
Gold’s popularity has reached such a fever pitch that retail chain Costco has limited the number of gold bars customers can buy per day. But that’s just the tip of the iceberg. A recent, groundbreaking survey by HSBC found that the allocation to gold has doubled in the portfolios of wealthy investors, from 5% to 11% this year alone.
“Gold is volatility’s best friend,” James Steel, HSBC’s chief precious metals analyst, put it figuratively.
One notable trend is the growing number of wealthy U.S. clients investing in physical gold, according to Stephen Jury of JP Morgan Private Bank. Previously, owning gold bars was more common in Asia and the Middle East, where people faced high inflation and depreciating currencies. Now, wealthy Americans are also looking to gold as a means of diversification and, more importantly, as a hedge against the depreciation of the U.S. dollar.
“Buying gold is much simpler than converting money into euros or yen and investing in the corresponding securities,” Mr. Jury explained. “It is easier for customers to understand and accept this way of storing money.”
So how do the super-rich buy physical gold? It’s certainly not by lining up at Costco. They have much more sophisticated and discreet investment channels.
Unallocated gold: This is the entry point for those who want to own physical gold. Instead of buying a specific gold bar, investors buy ownership of a certain amount of gold in the collective reserves of a large financial institution like JP Morgan. They have ownership of the equivalent value but cannot demand delivery of a specific gold bar. Investments for this type of investment typically start at $250,000.
Allocated gold: This is the highest level of ownership. Investors will own one or more specific gold bars, each with its own serial number, stored securely in a vault, completely separate from the bank's assets. A standard 400-ounce gold bar (about 12.4 kg) is currently worth about $1.37 million, not including storage and insurance costs.
“Some people believe that the end of the world is near. They want to hold the gold bar in their hands, knowing that it is their property and they can take it back at any time,” Mr. Jury said. “The richer they are, the older they are, the more careful they are about keeping their wealth.”
Impregnable "Fortress": Military bunkers and underground bunkers
When anxiety exceeds normal limits, even the most secure vaults of major banks are not enough to reassure the super-rich. They turn to the ultimate security solutions, places designed to survive any event.
Some customers want to store their gold themselves, with one even telling Mr Jury that they will “bury it in the garden”. However, banks have always advised against this because of the security risks and the difficulty of reselling it later.
Instead, real “fortresses” are chosen. JP Morgan has a top-secret gold vault in London. Access to it is virtually impossible. “Only clients with over $100 million in gold can be invited to see their metal,” Jury said. “There has to be a very good reason why we would close down to let clients in. But like everything else, if the amount is big enough, anything is possible.”
And the final option, for those who no longer have absolute faith in any government or banking system, is the former military bunkers deep in the Swiss Alps.
Companies like Swiss Gold Safe specialize in this service. According to CEO Ludwig Karl, their clients not only store gold but also diversify their storage locations to other safe havens like Singapore.
“Most of our clients come from developed countries,” said Karl. “They want to build a plan B by keeping some of their assets outside the banking system, in politically neutral and safe countries.”
It is a completely different world, where gold is not just an investment, but an insurance policy for the survival of assets across generations, regardless of political or economic fluctuations.
The super-rich are increasing their gold holdings amid rising geopolitical and economic tensions (Photo: Terravivos).
Advice for investors: Navigating the "gold storm"
Returning to the general market, experts predict that gold and silver prices will continue to fluctuate strongly in the coming time. So what should individual investors do?
Experts recommend keeping a close eye on key technical levels. A break above and above resistance levels would pave the way for a stronger rally.
"If gold prices hold above the $3,440-$3,450/ounce range, buying pressure could push prices towards the next psychological threshold of $3,500/ounce," said Renisha Chainani, head of research at Augmont.
Mr. Manoj Kumar Jain from Prithvifinmart said that the international gold price currently has a support zone in the range of $3,389-3,409 and a resistance zone of $3,454-3,480. For silver, the support zone is in the range of $37.30-37.64 and the resistance zone is $38.10-38.50. He strongly recommends holding long-term buying positions in silver.
The current gold rush is more than just a knee-jerk reaction to a president’s policies. It reflects a deeper anxiety about the stability of the global economy, the value of fiat currencies, and the future of the financial system. As HSBC’s James Steel has concluded, for gold to truly return to its “golden age,” investors will need to feel more fearful.
He said that if geopolitical uncertainty and economic policy are the main factors driving gold prices, the current risk level is not high enough. “It will take a lot more tension for gold to really break out,” he said.
And when we look at how the super-rich are quietly building their own gold "fortresses", perhaps that level of risk is not as far-fetched as we think.
Source: https://dantri.com.vn/kinh-doanh/theo-chan-gioi-sieu-giau-vao-ham-vang-day-alps-20250808011359384.htm
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