Institutional Money Now Flooding Into Gold
A currency's price in gold is the canary in the coal mine. Institutional money is having a Sterling Stamos Moment. They've spotted the biggest Ponzi scheme in global economic history and as a resut have reached down into the rat hole. Redemption time. Those risked funds are now flooding into gold. The currency fall, as all past currency falls that litter history, will be parabolic events when priced in the world's only long lasting currency—gold.
Sterling Stamos Moment #1, September 5, 2012 PIMPCO Pimping Gold
Paging "Smart Money's" Marc Faber: Finally, two hands in your audience were raised when for the hundredth time you asked large institutions if they new what gold was. Bill Gross's hand went up first. His fund PIMCO, the world's largest Bond Fund (that is aside from Bernanke's), is buying gold.
Let's give that a second's thought: A billionaire, that made a fortune in paper, is shunning paper and buying gold.
PIMCO pimping gold and on Bloomberg TV no-less.
Sterling Stamos Moment #2, September 7, 2012 World's Largest Hedge Fund Touts Gold in Forbes
Ray Dalio's Bridgewater Associates, the world's largest hedge fund, is echoing Bill Gross on why YOU need to own gold.
Gold is primarily an alternative to fiat currency and a storehold of wealth. The main advantage that gold has over other currencies is that it can’t be printed.
"Number Two", welcome to the party. The party that has been roaring for 10 years. You are just in time too, we still have lampshades.
I wouldn't call Dalio's Bridgewater Associates "Dumb Money", but the title "Smart Money" is reserved for Jim Sinclair (who top ticked the 1980s gold market and has been tirelessly beating this gold markets drum), Eric Sprott (80% of his own money in metals), Egon von Greyerz (who punctuates with confidence and certainty that this is historic because it is the first time all currencies are getting flushed once), Marc Faber (who was once Greenspan's boss and knows Greenspan is a moron) and those like them.
The gang who got in around 2002 has doubled their money, not once, not twice, but three times. Run the "Rule of 72" on that every 3.3 years. While everyone was taken to the woodshed the Smart Money was earning 22% (or maintaining their wealth as Bernanke et al decimated the value of every currency's purchasing power).
Smart Money also clearly articulates the differences in holdings. As in how much paper is traded with claims to what really physically exists... Continue Reading