CNBC International Live

Accumulate More Gold at Current Levels: Julius Baer CIO

Julius Baer’s chief investment officer urged clients and the bank’s own treasury to increase exposure to gold, arguing that current price levels present a rare entry point. He emphasized that the metal’s recent price rebound reflects both liquidity needs amid geopolitical stress and a potential influx of Russian gold following sanctions, making the market unusually liquid. The CIO outlined a two‑pronged strategy: buy physical bars for long‑term safety and use paper gold—ETFs, futures, or options—to capture short‑term volatility. With volatility at historic highs, selling options or taking short‑vol positions can generate attractive yields, while paper instruments provide flexibility for investors preferring USD or SGD‑denominated exposure. He cited the recent launch of the SGX Lion Global Physical Gold ETF and the SPDR Gold Trust as examples of vetted, location‑diversified products, stressing the importance of where the underlying gold is stored. He warned that sovereign actions—such as nationalization or forced seizure—remain a real risk, recalling past incidents in Korea and other jurisdictions. For investors, the recommendation signals a shift toward gold as a hedge against currency debasement and a multipolar financial system, rather than purely an inflation hedge. Both private wealth managers and central banks may re‑balance portfolios toward physical and paper gold, mindful of storage risk and the broader geopolitical backdrop.