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 ...
Better late than never I guess. And as they say on Zerohedge, “silver, bitchez”.
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.
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?
http://www.theaureport.com/pub/na/13278
Another good one for doom and gloomers and silver bugs and gold bugs
I always thought Connery was the Bond King.
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
Rothschilds = Buying Gold
Goldman Sachs= Buying Gold a month ago Duh
I have found this website to be a very useful source of information on the economy, gold, and silver.
http://goldismoney.info/forums/
I have found this website to be a very useful source of information on the economy, gold, and silver.
http://goldismoney.info/forums/
“...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.
Beats me. However, I do know that Abe Froman is the Sausage King:)
LOL! I just got that.
Is an oil etf just as good?
So who should one buy gold from? Who is legitimate and who charges the least on commissions?
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.
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.
That’s just Gross!
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