Room to Grow

Posted by on November 23rd 2011 in Bailout, China, Federal Reserve, General Economy, Gold, India, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

Last week the World Gold Council released research finding that “Gold remains an under-owned asset making up only 1% of global financial assets in private hands.” One reason often cited is the dearth of institutional investment in gold.  But Dow Jones reports that “Gold is on the verge of being re-incorporated into the financial system as large financial institutions boost their allocations of the asset,” according to Shayne McGuire of the Teacher Retirement System of Texas, speaking at a recent commodities conference.

McGuire and his retirement fund made big news last April by converting almost $1 billion of paper gold investments into bullion. Read more about McGuire, who laid out the rationale for investing the fund’s money in gold in an interview with the Financial Times, and in an essay published by Newsweek, that was adapted from his book, “Hard Money: Taking Gold to a Higher Investment Level.”

Related Links:

Dow Jones:  Gold settles shy of $1,700 as dollar weighs

MarketWatch:  Gold ends at loss but off session lows; silver down 3.2%

Reuters/NY Times“Disastrous” bond sale shakes confidence in Germany

Zero Hedge:  Germany sells 150,000 troy ounces of gold in October… But not why you think

Mineweb:  Could eurobonds backed by gold be Europe’s salvation?

Commodity Online:  China eyes the 2500 ton Italian gold reserve as gold & silver become legal currency

The Economist:  Euro crisis – The screw tightens

KWN:  Eric Sprott – This financial crisis will be a lot worse than 2008

Globe & Mail:  Sprott’s physical silver premium starts to fall

IB Times:  Stronger U.S. dollar keeps silver prices down

KWN:  Jim Rickards:  Who will bail out the Fed & how high for gold?

P. Radomski:  Short-term gold price moves from a different perspective

GoldMoney:  Gold buying increasing in India as concerns over rupee grow

Globe & Mail:  Royal Canadian Mint raises $600 million in gold fund IPO

Zero Hedge:  Thanksgiving tally: lunatics & hacks win as gold up 19.3% YTD; S&P down 7.5%

Happy Thanksgiving! Patrick Heller: “This week, as you count your blessings … be thankful for the benefits you are enjoying from the physical gold and silver that you own.”

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