Although it varies from financial institutions to financial institution, wealthy clients of Citigroup (NYSE:C) and UBS (NYSE:UBS) have been acquiring large allotments of gold, especially clients of UBS.
Regional head for central, eastern and northern Europe Citigroup, Africa and Turkey, Samir Raslan, said clients are buying gold, although they weren't going overboard on it.
At the Global Private Banking Summit, UBS executive Josef Stadler was far more upbeat, saying wealthy clients have been buying gold bars by the ton, removing assets from the financial system.
UBS is advising clients to put between 7 percent and 10 percent of their assets in gold, or other precious metals.
Continuing weak economic data from the U.S., along with European sovereign debt fears continue to be a major factor in the decisions, although the primary driver of gold prices is the failed policies of the central banks which are poised again to implement quantitative easing.
All of this has resulted in gold rising not only against the U.S. dollar, but other currencies as well, making it even more attractive because of the volatile economies around the world.
There is little to suggest this is going to change in the near term, so gold will continue to rise and wealthy investors will protect some of their assets with the safe haven metal, as well as other precious metals. Gold and silver will remain kings in this sector for now.
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