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

Tyler Durden's picture

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jkruffin's picture

Here is the ultimate, and only, clue you need to see to get out of the scam that is Bernanke's stock market.

 

http://finance.yahoo.com/news/2-years-after-market-low-the-apf-249207562...

 

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

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).

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. 

 

Bringin It's picture

Of course - OPM - Other People's Money.

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 manager...me.

Oh regional Indian's picture

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

The Axis of Evil Doing

http://aadivaahan.wordpress.com/2011/03/09/axis-of-evil-doing/

Appreciate comments etc. Tylers?

Thanks.

ORI

 

 

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...

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

MsCreant's picture

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

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:

       http://www.cnbc.com/id/41519175/Dutch_Central_Bank_pension_fund_must_sel...

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

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.

Freddie's picture

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

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)

 

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.

 

 

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).

 

DoChenRollingBearing's picture

@ 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.

WilliamShatner's picture

DoChen,

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.

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.

stopthenewworldorder's picture

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

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.

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.

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.

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.
http://oko-organic-clothing.blogspot.com/2011/03/juju-donkeys-buck-wild-...

Hulk's picture

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

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.

NOTW777's picture

watch libya - its not settling down

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.

Ckskr.

DoChenRollingBearing's picture

Don't hold back on us now DosZap... 

+ LOLOL

earnyermoney's picture

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

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.

Judge Judy Scheinlok's picture

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

FeralSerf's picture

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

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. 

cetarro's picture

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

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?

DosZap's picture

cetarro

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

The Gv't didn't apprecite it.

Hannibal's picture

Lets get physical,...physical!

NOTW777's picture

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

i ve seen many

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.

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 :)

NOTW777's picture

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

nyse's picture

It almost seems illegal.

 

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

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.

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?