UBS and Credit Suisse have opposing views on gold
(Kitco News) - According to data collected by Goldreporter, Credit Suisse sold off around 37 percent of its holdings in SPDR Gold Shares ETF, the is the world’s largest gold exchange-traded fund. This happened second quarter taking its total holdings to around $131 million.
The bank sold more fund shares in percentage terms than the world's largest asset manager BlackRock which holds around 29 percent of the ETF. Another large bank, UBS made a move in completely the opposite direction.
The other Swiss central bank increased its stake in the ETF over the same period by 4.85 percent to over $1 billion. UBS is one of the largest investors in the index fund after Bank of America and Morgan Stanley.
In terms of market commentary, at the end of July, Credit Suisse was again very bullish on gold. Their analysts noted, "We are assuming that the gold price will be $2,000/oz at the end of 2021". They based their projections on falling bond yields and a continuation of loose monetary policy and the resulting low-interest rates. Gold was also still suitable as means of portfolio diversification, both against high global debt and emerging cryptocurrencies.
In contrast, UBS recently said, "in mid-August that prices could fall to $1,600/oz.". They added "If we assume that the world is changing for the better - why do we need an investment that is primarily used as portfolio insurance?". UBS noted that silver and platinum would now be the better investments.