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Bill Gross the “Bond King” says Buy Gold, Not Bonds
washingtons ^ | September 10, 2012 | Washingtons

Posted on 09/11/2012 8:29:15 PM PDT by dennisw

Bill Gross Says that Gold Holds Its Value, While – In an Era of Central Bank Money Printing- Paper Money Doesn’t

Bill Gross – the world’s pre-eminent bond fund manager, nicknamed the “Bond King” – is the boss at Pimco, the world’s largest bond fund, with $1.8 trillion dollars under management.

Gross told Bloomberg:

[There's] a diminished or dying cult of both bonds and stocks from the standpoint of a belief that they can return 10% ….

Gold can’t be reproduced. It could certainly be taken out of the ground in an increasing rate but there’s a limiting amount of gold.

And there has been an unlimited amount of paper money over the past 20 to 30 years and now – in this period of central bank expansion where it’s QE1 or QE2, or whether it’s the LTROs of the ECB or this potential new program … then central banks are at their leisure to basically print money.

Gold is a fixed commodity that has a considerable store of value that paper money has not….

When a central bank starts writing checks and printing money in the trillions of dollars, it’s best to have something tangible that can’t be reproduced, such as gold.

***

Gold … is a better investment than a bond or a stock, which probably will only return a 3 to 4 percent return over the next 5 to 10 years.

(Excerpt) Read more at washingtonsblog.com ...


TOPICS: Business/Economy; Society
KEYWORDS: billgross; pimco

1 posted on 09/11/2012 8:29:20 PM PDT by dennisw
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To: dennisw

Better late than never I guess. And as they say on Zerohedge, “silver, bitchez”.


2 posted on 09/11/2012 8:30:13 PM PDT by gotribe (WTF?)
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To: dennisw

I’ll never understand.. the dollar is crashing or at least the rate of inflation is about to explode and people are willing to trade their gold for soon-to-be worthless dollars. It don’t make a lick of sense.. but I hear offers all day long on radio ads.


3 posted on 09/11/2012 8:32:30 PM PDT by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: dennisw

Hmmm. The “Bond King” who makes his living buying cheap bonds, says that people should sell bonds and buy gold. I wonder who will buy those bonds from them?


4 posted on 09/11/2012 8:33:02 PM PDT by wideawake
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To: dennisw

http://www.theaureport.com/pub/na/13278

Another good one for doom and gloomers and silver bugs and gold bugs


5 posted on 09/11/2012 8:34:36 PM PDT by dennisw (Government be yo mamma - Re-elect Barack Obama)
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To: dennisw

I always thought Connery was the Bond King.


6 posted on 09/11/2012 8:37:21 PM PDT by Joe 6-pack (Que me amat, amet et canem meum)
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To: wideawake

I’m sure Bill was always buying gold. But he’s in the bond promotion and selling business so he never discusses it, it is bad for business. He is worth 1-2 billion and prolly has a lot in gold and bonds. Some stocks I suppose


7 posted on 09/11/2012 8:38:23 PM PDT by dennisw (Government be yo mamma - Re-elect Barack Obama)
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To: dennisw
Soros = Buying Gold

Rothschilds = Buying Gold

Goldman Sachs= Buying Gold a month ago Duh

8 posted on 09/11/2012 8:38:23 PM PDT by scooby321 (AMS)
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To: dennisw

I have found this website to be a very useful source of information on the economy, gold, and silver.

http://goldismoney.info/forums/


9 posted on 09/11/2012 8:41:34 PM PDT by Silver Sabre
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To: dennisw

I have found this website to be a very useful source of information on the economy, gold, and silver.

http://goldismoney.info/forums/


10 posted on 09/11/2012 8:41:39 PM PDT by Silver Sabre
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To: WilliamofCarmichael

“...people are willing to trade their gold for soon-to-be worthless dollars. It don’t make a lick of sense.. but I hear offers all day long on radio ads.”

Sellers of gold rely upon their ability to buy gold and sell it for whatever markup they can generate. They can always get more gold. They are not hoarders of whatever they have in inventory, otherwise they would never be able to pay their rent. Nor are they bettors upon a linear, continuous price increase in spot gold. The margins they work on are tiny.


11 posted on 09/11/2012 8:42:12 PM PDT by Attention Surplus Disorder (This stuff we're going through now, this is nothing compared to the middle ages.)
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To: Joe 6-pack
I always thought Connery was the Bond King.

Beats me. However, I do know that Abe Froman is the Sausage King:)

12 posted on 09/11/2012 8:42:47 PM PDT by Ken H
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To: Joe 6-pack
I always thought Connery was the Bond King.

LOL! I just got that.

13 posted on 09/11/2012 8:45:22 PM PDT by Ken H
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To: scooby321
Billionaires Dumping Stocks?
14 posted on 09/11/2012 8:45:45 PM PDT by RckyRaCoCo (I prefer liberty with danger to peace with slavery, IXNAY THE TSA!)
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To: WilliamofCarmichael

Is an oil etf just as good?


15 posted on 09/11/2012 8:52:25 PM PDT by mriguy67
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To: Silver Sabre

So who should one buy gold from? Who is legitimate and who charges the least on commissions?


16 posted on 09/11/2012 9:12:27 PM PDT by Jake8898
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To: mriguy67
Is an oil etf just as good?

Gold is considered by many to be a currency-equivalent and a storehouse of value. Oil is neither. Oil is a commodity with a utility that varies with, among other things, economic activity. It is not better of worse than gold, just different: more like copper. The closest commodity to gold in the sense of being a currency-equivalent or storehouse of value, would be silver.

Finally, ETFs are a bad way to own anything, including gold: fees, commissions, bid-ask spreads, no security of title, etc. Depending upon the type of ETF, there are upwards of seven reasons to avoid an ETF. Buy the "underlying" asset or, if you desire leverage, use futures contracts and roll them as they come due.

17 posted on 09/11/2012 9:20:07 PM PDT by Kennard
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To: Jake8898
So who should one buy gold from? Who is legitimate and who charges the least on commissions?

Minimize commissions, bid-ask spreads, storage fees and insurance by purchasing 400-ounce London Good Delivery bars from one of the seven storage members of the LBMA. The bank that can provide all these services (brokerage, storage, insurance, etc.) is HSBC.

18 posted on 09/11/2012 9:27:47 PM PDT by Kennard
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To: dennisw; Revolting cat!; JoeProBono
Great! Now what? I just invested $10,000 in Gold Bond.


19 posted on 09/11/2012 9:38:16 PM PDT by a fool in paradise (Obama likes to claim credit for getting Osama. Why hasn't he tried Khalid Sheikh Mohammed yet?)
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To: a fool in paradise

That’s just Gross!


20 posted on 09/11/2012 9:41:08 PM PDT by Revolting cat! (Bad things are wrong!)
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To: Jake8898

Apmex would be okay I guess.


21 posted on 09/11/2012 10:28:47 PM PDT by Silver Sabre
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