Guest Post: The Driver For Gold You’re Not Watching

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Tue, 03/08/2011 - 20:20 | 1031458 jkruffin
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Here is the ultimate, and only, clue you need to see to get out of the scam that is Bernanke's stock market.


Anyone who doesn't see this as the sign to bail if you are long, you really need your head examined!

Tue, 03/08/2011 - 20:27 | 1031485 The They
The They's picture

all the pension funds have bought into this phony stock/bond market and will be the ones holding the bag when the shit hits the fan.  Only then will they realize that they should have bought gold but by then they'll have lost all their money and thus be irrelivant (ok maybe this is a slight exageration).

Tue, 03/08/2011 - 20:31 | 1031502 NewThor
NewThor's picture

Pension funds get kick backs to buy crappy stocks and bonds in bulk.

If you want to find corruption, just look for something that is supposed to be regulated by 

the Government. 


Tue, 03/08/2011 - 21:18 | 1031703 Bringin It
Bringin It's picture

Of course - OPM - Other People's Money.

Tue, 03/08/2011 - 21:40 | 1031771 Dr. Porkchop
Dr. Porkchop's picture

It's bad in Canada. We have high management fees for mutual funds. People are piling into ETFs because they have lower fees, but I wonder if people know what they're getting into. I'm buying physical metals, 100% management fee to the fund

Wed, 03/09/2011 - 06:34 | 1032376 Oh regional Indian
Oh regional Indian's picture

OT, this might be very pertinent and worth a look and share.

The Axis of Evil Doing

Appreciate comments etc. Tylers?





Tue, 03/08/2011 - 20:48 | 1031575 traderjoe
traderjoe's picture

Pension funds are run by professional money managers (aka parasites). They won't be left holding any bag. The pensioners will be, but that is a whole different matter. The creation of pension funds (trapping the savings/excess labor of workers) was a 'genius' creation of Wall Street. Fees, kickbacks, vessels for crap CDO's, etc., etc. It's a Frankenstein creation of the 'money-changers'. They have no incentive to buy gold, to own gold, or even to protect themselves from any Fourth Turning...The money managers have taken care of themselves quite nicely, thank you very much...

Tue, 03/08/2011 - 21:42 | 1031773 dark pools of soros
dark pools of soros's picture

but, just like that veggie cart dealer in Tunisia, it only takes one to start the fire...  what if one pension fund flipped all assets into silver/gold/oil??   You could probably talk someone in Wisconsin into doing that right about now

Tue, 03/08/2011 - 21:45 | 1031781 dick cheneys ghost
dick cheneys ghost's picture

China and OIL..............

Tue, 03/08/2011 - 22:03 | 1031828 MsCreant
MsCreant's picture

Utah? They are trying to pass legislation to pay taxes in silver and gold.

Tue, 03/08/2011 - 22:35 | 1031905 BigJim
BigJim's picture

what if one pension fund flipped all assets into silver/gold/oil??

Well, here's what happened in Holland when a pension fund had 13% in gold:

The banksters won't let it happen, is what happens.

Tue, 03/08/2011 - 23:11 | 1031976 IQ 145
IQ 145's picture

 Because they're too exposed to a possible decline in the price of gold. You gotta love it. If they put the money in German Government Bonds, like the rest of their portfolio; everything will be fine; because Bonds never go down. WTF ? The fuck they don't. Outrageous.

Wed, 03/09/2011 - 00:22 | 1032101 Freddie
Freddie's picture

Over 6 months ago the University of Texas endowment bought $500 million in gold.  The entire endowment is about $22 billion. 

Wed, 03/09/2011 - 00:55 | 1032162 Fred Hayek
Fred Hayek's picture

Apparently they're a hell of a lot smarter than Harvard et al.

Hook 'em Horns!

(And I'm in Massachusetts)


Wed, 03/09/2011 - 04:16 | 1032323 Snidley Whipsnae
Snidley Whipsnae's picture

"In any great organization it is far, far safer to be wrong with the majority than to be right alone."
John Kenneth Galbraith

Unfortunately any pension fund that bucked the Fed/Treasury by loading up on PMs would suffer the fate of Bear Stearns or Lehman Bros...maybe not immediately, but down the road they would be made to pay dearly.

For now it is enough that the Asians and the Mid Easterners are heavy buyers of PMs. They are buoying the PM market sufficiently to prevent the Western CBs/bullion banks/commodities exchanges from manipulating PM prices lower with paper PM garbage. When gale froce 5 inflation winds begin to blow the paper will be swept away like straw in a tornado.



Tue, 03/08/2011 - 20:41 | 1031544 WilliamShatner
WilliamShatner's picture

I saw that article today and the EXACT same thought crossed my mind.

When the little guy starts getting in, or at least when the MSM starts talking about the little guy getting in, you need to start working on an exist strategy for you stocks (except for your precious metals stocks).


Tue, 03/08/2011 - 21:03 | 1031645 notadouche
notadouche's picture

Wash, rinse, repeat.

Tue, 03/08/2011 - 22:00 | 1031822 DoChenRollingBearing
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@ Capt. Kirk,

I do not see the little guys getting in in a meaningful way until the opportunity has already passed them by.  And so they will not.

I do not think pensions are going to move the needle much re gold.

It will be other big players that move the price of gold (central banks, rich people, etc.).

One guy's opinion.

Tue, 03/08/2011 - 22:11 | 1031846 WilliamShatner
WilliamShatner's picture


I agree, in fact the second thought that crossed my mind when I read that article was "how many people do I know diving into the stock market?"

Answer: very few

My inclination is that the article was put out to goad the little guys out the into piling back into stocks like Apple, Netflix and Google.

This leads me to believe that the market rally still has some legs and will continue throughout the summer, they need to keep it going so they can pull in as many suckers as possible before they pull the rug out from under them.

I'm still staying in physical precious metals and related stocks as well as a some money in other resource companies like the uranium and rare earth miners.

Tue, 03/08/2011 - 22:31 | 1031896 DoChenRollingBearing
DoChenRollingBearing's picture

Rare earths...  Did I miss a run there even though I have been looking at that sector for over a year.

At some point I am going to have to pull the trigger and buy AVL and/or MCP.  Then they will down.

Wed, 03/09/2011 - 05:31 | 1032358 stopthenewworldorder
stopthenewworldorder's picture

have a butchers at frontier rare earths, way cheaper but a quality asset....

Wed, 03/09/2011 - 03:00 | 1032287 Non Passaran
Non Passaran's picture

I agree, too. And like you, I'm long PMs, PM miners, and Uranium.
Miners and Uranium have been very erratic lately, but I plan to stay on board and add some more when I can.

The article is correct. While say 65% of those funds won't do what they should*, if the rest does invests just 5% in PMs, effects on PM prices will be material.
[* how can they when they must maintain 8% yields that spending projections call for!]
And let's not forget that a lot of that money isn't in US funds. I don't think all foreign funds - especially Asian - will sing to the Western anti-PM tune.

Tue, 03/08/2011 - 20:21 | 1031463 NewThor
NewThor's picture

The best thing about eating gold is pooping gold.

Don't eat ETF GLD paper though, it's boring and painful to poop out.

Tue, 03/08/2011 - 20:36 | 1031524 mynhair
mynhair's picture

The worst thing about drinking gold is putting up with that crap alcohol they put it in.

Time for a 'gold' single malt.

Tue, 03/08/2011 - 20:27 | 1031478 putbuyer
putbuyer's picture

A video break. Buy Silver. Loading up every week. Read Casey AMAP.

Every time I see a cool video from the chick that lives
semi off the grid, I like to post the video because like
myself, many of us are preparing for survival when the
SHTF. I have my land in NH. The last 4 minutes are
fantastic. Give it a look and enjoy.

Tue, 03/08/2011 - 21:17 | 1031695 Hulk
Hulk's picture

Like what she is doing, but I think she may be a bit off her rocker...

Tue, 03/08/2011 - 23:29 | 1032013 lincolnsteffens
lincolnsteffens's picture

If you think that is fantastic I just finished a finger painting you probably want to take home and show  to any of your smoked up friends. This is just a girl with extra time thinking every body really wants to watch her walk up a hill with two pets.

Great Theatre, not.

Tue, 03/08/2011 - 20:27 | 1031482 NOTW777
NOTW777's picture

watch libya - its not settling down

Tue, 03/08/2011 - 20:38 | 1031533 DosZap
DosZap's picture

It will why OwaWaaah,brings the Pol Refs to the USA, adding to even more crime,burdens,welfare,NO jobs, and starting NEW terrorist cells.WTF, should we be bring more people into this country?, where is the rhyme or reason?

Truthfully I know this man is SET out to destroy this country.


Tue, 03/08/2011 - 22:02 | 1031830 DoChenRollingBearing
DoChenRollingBearing's picture

Don't hold back on us now DosZap... 


Tue, 03/08/2011 - 21:29 | 1031737 earnyermoney
earnyermoney's picture

Watch Bahrain, the proxy fight between Iran and Saudi Arabia.

Tue, 03/08/2011 - 20:28 | 1031486 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Sell low, Buy high. Idiots.

Come one elites, slaughter these fools... i agree, you've converted me, screw humanity, the world would be far better off without these herds of useless docile sheep.

P.S. I am still awaiting delivery of my ticket(s) to the underground facility at Denver airport. I have the 1 oz of gold per ticket ready for payment as agreed.

Tue, 03/08/2011 - 20:47 | 1031569 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

Yea baby! Look for the signs "Marla/Tyler" and follow the arrows. Free entry.

Tue, 03/08/2011 - 22:52 | 1031943 FeralSerf
FeralSerf's picture

That's the Soylent Green queue -- always free entry to that one.  Marla and Tyler aren't team players (I hope).

Tue, 03/08/2011 - 20:29 | 1031487 gwar5
gwar5's picture

Institutional investors, that's what I've been saying.... where have they been on gold? Orders from the Fed to steer clear?

If any of these funds start to get serious about U$D Bernankicide, gold has got to go up.  They'll have to jump in sooner or later.

If even a few of them put a toe in the water it would have a big impact.  Greshams' law. Sooner or later they'll figure out that the stock market is denominated in U$D and, in real terms, they have been losing money or merely treading water. 

Tue, 03/08/2011 - 20:29 | 1031489 cetarro
cetarro's picture

Wasn't it a pension fund that was ordered to sell its gold?

Tue, 03/08/2011 - 20:54 | 1031607 JohnG
JohnG's picture

It was the Dutch!  Damn then! :)


Tue, 03/08/2011 - 21:07 | 1031660 GoinFawr
GoinFawr's picture

A warning to what's left of the honestly run funds not 'to get too cute', just buy our quadriple A doubleplusgood rated paper?

Tue, 03/08/2011 - 21:10 | 1031672 DosZap
DosZap's picture


Yes, a Public fund had a Union that had 15%investment, was forced to 5% MAX.

The Gv't didn't apprecite it.

Tue, 03/08/2011 - 20:32 | 1031503 Hannibal
Hannibal's picture

Lets get physical,...physical!

Tue, 03/08/2011 - 20:32 | 1031505 NOTW777
NOTW777's picture

how many 401 or other pension plans offer no PM options?

i ve seen many

Tue, 03/08/2011 - 20:55 | 1031617 hambone
hambone's picture

My employer - an industry leader - offers only long and longer and no PM's, no individual stocks, no ETF's.  Enjoy MM or loooooooooooooooong.  Not nice.

Tue, 03/08/2011 - 21:05 | 1031651 NOTW777
NOTW777's picture

i help some people who want a 2nd opinion on managed funds at TBTF banks.  their accounts are often set up to prohibit short vehicles and even some etf and etn products.  unless you complain and get things adjusted you are basically stuck long only equities.  you should see the reaction of the banks when people suggest self directed accounts :)

Tue, 03/08/2011 - 21:11 | 1031682 NOTW777
NOTW777's picture

many company 401 plans only offer a poor selection of long equity funds with little or no access to PMs 

Tue, 03/08/2011 - 21:38 | 1031762 nyse
nyse's picture

It almost seems illegal.


Tue, 03/08/2011 - 22:57 | 1031953 FeralSerf
FeralSerf's picture

It's illegal (and immoral) to let the sheep go unsheared.

"It is better to take what does not belong to you than to let it lie around neglected."
Mark Twain

Tue, 03/08/2011 - 20:32 | 1031507 Bartanist
Bartanist's picture

This article smells of a dotcom business plan....

"the total market is a bazillion and if we only get .1% of that it sends shareholder value to the stratosphere" Are you in?

Too many unfounded assumptions for my taste.

Tue, 03/08/2011 - 20:50 | 1031531 Bay of Pigs
Bay of Pigs's picture

I'm sure the people who have the pensions in TX feel diferently than you do about it. McGuire has them invested in gold.

Did you miss that part?

Tue, 03/08/2011 - 20:32 | 1031508 Don Birnam
Don Birnam's picture

Au 79, people.

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