Bill Gross: Every investor should look towards buying gold
Bill Gross has certainly become a very interesting character since the financial crisis kicked into top gear in 2008. For those that don’t know he runs Pimco, which is the biggest private buyer of bonds on the planet and as such he has always been viewed as very much a ‘connected insider’ – after all the former Fed chair Alan Greenspan went to work at Pimco after he left the Fed and don’t think for one second that he was hired for his economic acumen, rather Greenspan was bought on board because his still very close ties with the Fed.
But since 2008 we’ve seen flashes of Gross the insider becoming Gross the defector. His monthly newsletters have become a must read because of his very astute awareness on the unsustainability of the current Fed’s repressive actions.
If you haven’t read his monthly letters you can find them here and we strongly recommend that you take the time to browse over some the past couple of year’s offerings. His latest piece is titled “The Great Escape:Delivering in a Delevering World” and is a very good place to start.
He’s also hinted that gold is a good buy before and even went nearly as far as to give Ron Paul his endorsement for presidential candidate – defiantly not the typical action of financial ‘insider’.
So whilst it’s undeniable that he’s very much at the top-table in terms of players in the global financial markets, he always writes and speaks with a refreshing honesty that is very rarely seen from someone with ‘insider’ status.
So it should be no surprise that Bill Gross has just appeared on TV advising that all investors should at least look towards buying gold.
In his latest newsletter (see above) he said that he was planning the great escape from a finical repressive environment. He expanded on this on CNBC saying that investors have to be very careful – there is a danger of a bear market in bonds. He then offered the following advice:
- Look for inflation protection in the TIPS market
- Look for dividend paying stocks rather than growth stocks.
- Move into ‘real’ assets like commodities, things that are tangible – he says this is the most important thing
- He then goes onto say that QE3 is coming in the USA probably announced in April.
Then at around the 4:15 mark in the video he was then out-and-out asked “would you buy gold here?”, to which Gross replied:
I think so [buy gold], but in terms of what percentage you should own i think that’s delicate in terms of risk for each individual portfolio. But i think that it has a place [buying gold] in a mildly inflation world… then gold has a protective insurance element that i think that every investor should at least look towards.
[emphasis ours]
So let’s just get this straight, the guy that has made his name in buying up bonds, to the point where his company Pimco is the biggest private buyer on bonds on the planet, has just walked onto TV set and recommended that “every investor should at least look towards” owning gold – that’s a very powerful recommendation to put it mildly.
Related posts:
- “When they stop buying bonds, the game is over.”
- More central bank buying of gold – this time Korea
- There have been 3 great gold buying opportunities in the past 3 years… is/was that the 4th?
- Global gold buying meme shows now sign of letting up – this time Syria
- World Gold Council: Central bank gold buying up 470% in 2011
Link to this article: : http://www.goldmadesimplenews.com/gold/bill-gross-every-investor-should-look-towards-buying-gold-6476/
Posted by Thomas Paterson on Mar 28 2012. Filed under Analysis, Gold News, Interviews, Markets.
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