This Month in Gold – October 2012

Bridgewater’s Dalio Likes Gold, Breaks From Buffett 
Forbes – Ray Dalio, manager of one of the world’s most profitable hedge funds – the $120 billion Bridgewater Associates – likes gold, sees it as a useful inflation hedge, and thinks it belongs in any well-diversified portfolio. For Dalio, gold is “the alternative money.” Concerning Warren Buffett’s stated aversion to gold, Dalio believes the Oracle of Omaha is “making a big mistake.” His pronouncements bring Dalio into line with peer hedge fund juggernauts George Soros, John Paulson, and David Einhorn.
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Bank of America Sees $2,400 – no – $3,000 Gold
CNBC and Financial Post – Bank of America Merrill Lynch is internally conflicted about gold at the moment. Fortunately, only in a good way. In mid-September, Francisco Blanch, a global investment strategist with the bank, claimed the Federal Reserve’s open-ended QE3 would propel the yellow metal to $2,400 an ounce by late 2014. A week later, Stephen Suttmeier, an analyst with the bank, wrote in a note to clients that the secular trend more likely suggests around $3,000 an ounce by early 2014.
Read Full Articles: CNBC>> FP>> (Both CNBC and FP link went to same CNBC article– seems like issue with original publishing) 
  
Barclays Opens New Gold Vault in London

Reuters – In September, the British banking giant Barclays opened the first bank-owned bullion vault that London has seen in over five years. Barclays expects demand to come primarily from institutional investors and sovereign funds. The launch reflects the ever-growing appeal of precious metals among investors. For security reasons, the vault’s location is top secret. 
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Wealthy Investors Pile into Physical Bullion
Bloomberg – Deutsche Bank AG’s asset and wealth-management unit reports that more and more high-net-worth individuals are expressing interest in protecting their wealth from central bank-induced inflation by owning gold. Not all gold is equal, however. Physical trumps virtual. “For our ultra-high-net-worth clients, and a growing number of our high-net-worth clients who have significant liquidity, they are becoming increasingly concerned to have at least some of their exposure to this asset class in the form of allocated physical bullion itself, rather than the indirect exposure that an over-the-counter product offers,” says Mark Smallwood, head of Asia-Pacific wealth-management solutions. 
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EM Central Banks Yet Again Buy More Gold

MarketWatch – In what has become a monthly affair, emerging markets’ central banks continued to boost their gold reserves in July to mitigate the risk associated with holding too many dollars and euros. Turkey added 44.7 metric tons, Russia added 18.6 tons, South Korea added 15.5 tons, and Kazakhstan added 1.4 tons. Ukraine and Kyrgyzstan added 0.2 and 0.1 metric tons, respectively. Market participants say the purchases are an important support for the price of the yellow metal. 
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