Bill Gross,the PIMCO Bond King says GOLD and REAL ASSETS is the place to be
Bill Gross says only gold and real assets will thrive in fiscal ‘ring of fire’
October 2, 2012, 10:58 AM
The latest round of quantitative easing made gold “even more attractive” and owning the metal should be considered as part of a diversified portfolio, analysts at bond giant Pacific Investment Management Co. said in a white paper posted Tuesday on company’s website.
Pimco founder and co-chief investment officer Bill Gross, in his separate monthly investment outlook also posted Tuesday, said only gold and real assets would thrive in a “ring of fire” of U.S. fiscal problems.
Gold GG GCZ2 -0.06% elicits black and white responses, the Pimco analysts said. Some investors “have a deep, almost religious conviction that gold is a useless, barbaric relic with no yield,” while others “love it” and see it as “the only asset that can offer protection from the coming financial catastrophe” always just around the corner, they said.
“Our views are more nuanced … Our bottom line: given current valuations and central bank policies, we see gold as a compelling inflation hedge and store of value that is potentially superior to fiat currencies,” the analysts said. ”We believe investors should consider allocating gold and other precious metals to a diversified investment portfolio.”
Other investments, such as Treasury Inflation-Protected Securities, offer an inflation hedge. TIPS are also less volatile than gold. History shows, however, gold’s high correlation to inflation and gold’s unique supply-and-demand characteristics may lead to attractive valuations, the analysts said.
In his piece, Gross warned the U.S. would no longer be “the first destination of global capital” seeking safe returns if it doesn’t address its fiscal gap. The U.S. “will begin to resemble Greece before the turn of the next decade” if it continues to close its eyes to deficits, Gross said
What is really inconsistent about the American way of viewing all things financial is that on the one hand many understand the fraud taking place in our financial system, vis-à-vis
the counterfeit monetary system.
How many visit this message board that own businesses? And how many of them raise prices to their customers knowing full well that the reason has nothing to do with “inflation” as a deceitful way to explain those increased prices?
How many of them have children, which they proudly (or so they say) are in our military, knowing full well that the reason this has become such a warring country is to line the pockets of the banksters while proclaiming false grief at the loss of a family member in military conflicts?
How many also understand well enough how to profit from the increased value of their PM investments, not to just to protect what they have financially, but with the hope that the counterfeit money scam will continue in order to enrich themselves without also recognizing how evil this empire of funny counterfeit money has become in contrast to its founding based on the liberty defined in our US Constitution, whose very foundation relied on honest money?
Why haven’t they, who have more influence than most others, used that influence to right the wrongs visited on those with less ability to influence their political representatives, either current or possibly those who will attain office, to openly recognize that we must put an end to the fraudulent Federal Reserve System? Where are enough numbers of them calling for this to make it a national priority? Could it be this larceny has become so widespread in the thinking of those who are gaining prosperity, while the vast majorities are losing it, that only self interest motivates their thinking, in contrast to many who gave up everything, including for some their lives, and for others to live afterwards in poverty and in hiding during this nations founding?
Gary Johnson, Libertarian for POTUS, seems to be trying to return us to a time when we could proudly proclaim ourselves as Americans.
I just want to know where I can get my Obama iphone you know the FREE phones the govt gives away with FREE service, costing us to the tune of 1 BILLION a year....SICKENING!! if he wins 4 more years will destroy this country, so so sad....Im beginning to wonder with the manipulation of the market if silver will ever get above 35....Im disgusted with it all.
Now that Ron Paul is basically out of the running (if, in fact, he ever was even seriously pursuing the presidency and now I have major doubts about that) Gary Johnson would be a 'workable' choice.
There are some serious issues I have with him. Namely, his stand on the so-called FairTax (sic). It is as though he's never been schooled on what the money extracted from the people under threat of violence even goes for; no one has made him aware that running a constitutionally oriented government is not the purpose. He apparently is entirely unaware of the Grace Commission report.
We differ on some social issues, too, but they pale in comparison to dealing with what I think is the greatest problem we face—the debt based money That said, though, he is the only remaining voice that wants to gut the federal reserve system.
Restoring true liberty, once the tumorous governments at all levels are reduced by financial deprivation that once existed in America, will be rather easy. As before, they will simply lack the funds to be as intrusive as they have become armed with the printing press and its products.