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“If Just 1%Of Japanese Pension Assets Shift Into Gold, The Gold Market Would Explode”

Tyler Durden's picture




 

Last night we reported that in the encroaching attempt to globalize the fiat ponzi regime, in Japan's latest rush to crushTM (sounds even better than race to debase) its currency it would proceed to monetize even more debt, only not its own debt - a strategy that has failed miserably to stimulate inflation for the past 30 years - but that of Europe.

So far so good, and perfectly expected in a monetary lunatic asylum in which coining money without an appropriate collateral backing is actually considered sound monetary policy by Nobel prize winners.

What gives us some hope that there may be at least one sane voice left in the wilderness is the far less trumpeted news overnight that "Japanese pension funds, the world’s second-largest pool of retirement assets after the U.S., will more than double their gold holdings in the next two years as the new government pushes for a higher inflation target, according to an adviser to the funds. Assets held by Japanese pension funds in gold-backed exchange-traded products may expand to 100 billion yen ($1.1 billion) by 2015 from less than 45 billion yen at present." The reason for the move is fear that Abe is actually able (unlike last time when his failure was accompanied by an inexplicable case of career-ending diarrhea) to hit his goal of 2% inflation, without in the process sending bond yields so high all tax revenue goes solely to cover interest expense on the JPY 1 quadrillion pyramid of debt and rising. Which, incidentally, according to many traders is the reason for the move higher in gold prices today.

From Bloomberg:

Mitsubishi UFJ Trust and Banking Corp., which introduced Japan’s first gold ETF in 2010, expects assets held in the product to double over the next several years from 26.2 billion yen as of Nov. 30. Global investors are holding a near-record amount in gold-backed ETPs that are valued at $139.6 billion, data compiled by Bloomberg show.

 

Assets held by corporate pension funds in Japan amounted to 72.24 trillion yen as of March 2012, declining 0.9 percent from a year earlier, according to Yasuo Sugeno, director at Daiwa Institute of Research in Tokyo. Of the total, about 72 billion yen were allocated to commodities including gold through hedge funds, he said Dec. 10.

 

Government Pension Investment Fund of Japan, the operator of the world’s largest pension fund with 113.6 trillion yen, stays away from commodity investment as 67 percent of their assets were allocated to Japanese bonds, Sugeno said.

 

Japanese pensions oversee $3.36 trillion, according to human-resource
and consulting services company Towers Watson & Co.
Corporate
pension funds in Japan will diversify 72 trillion yen in assets after
domestic stocks produced little return in the past two decades,
according to Daiwa Institute of Research.

So after the rotation, paper gold holding will double to a whopping... 0.03% of all pension fund assets! Now imagine what happens to the price of gold if Japan does indeed succeed in generating inflation, and pension funds scramble to push 1, 2, 5% or more of their assets into gold. Sure enough:

Perhaps it is time for the punditry and the chatterbox media to start considering what happens not when the much anticipated rotation out of bonds and into stocks, which has not happened for 4 years now, and won't, at least not until the government bond bubble finally pops which will only happen when the central banks finally lose control, but what happens if even a tiny amount of the global pension capital allocated to bonds and/or equities, is rotated into gold.

“Pension money invested in bullion is ‘peanuts’ at the moment,” Toshima
said. “If 1 percent of their total assets shift to the metal, the gold
market would explode.”

Could not have said it better ourselves.

 

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Tue, 01/08/2013 - 12:56 | 3133143 jonan
jonan's picture

gold-ichiwa, bitchez...

Tue, 01/08/2013 - 12:58 | 3133151 The Juggernaut
The Juggernaut's picture

Fucking do it then!  Rush to crush was a college game.  Girls loved it.

Tue, 01/08/2013 - 13:07 | 3133188 Buckaroo Banzai
Buckaroo Banzai's picture

It's just like if someone threatened to ban, say, something plentiful and readily available like "Assault Clips" (ROFL), then suddenly there wouldn't be any available, at any price, anywhere.

Or something like that.

Tue, 01/08/2013 - 13:19 | 3133244 Snakeeyes
Snakeeyes's picture

Sod Japan. How about a simiar amount from The Fed's blob-like spreadsheet!

http://confoundedinterest.wordpress.com/2012/12/16/the-new-hoover-dam-20...

Tue, 01/08/2013 - 13:36 | 3133315 BaBaBouy
BaBaBouy's picture

The CB FIAT Printing And GOLD Manip Will End Soon, This YEAR, Bitchezzz.

GOLD will be the Star.

 

Tue, 01/08/2013 - 14:15 | 3133463 strannick
strannick's picture

Unfortunately, if they've been naive enough to buy Japanese bonds, they will be naive enough to buy GLD

Tue, 01/08/2013 - 14:50 | 3133607 trav777
trav777's picture

article is total BS.  ETFs can expand infinitely to accommodate influx of monies.

It's not real gold...it is options to have gold or promises to possibly deliver gold if they don't have to go to too much trouble to get it.

ETFs and the lot permit the manufacture of infinite ounces of paper gold and a mechanism by which cash can settle in lieu of real material.  Even allocated accounts work this way.

Tue, 01/08/2013 - 16:23 | 3133938 Real Estate Geek
Real Estate Geek's picture

I wouldn't call it BS, but iI must admit I kept looking for the Goldcore byline

Tue, 01/08/2013 - 13:41 | 3133341 SAT 800
SAT 800's picture

yeah; something like that. I think it's called supply and demand; but that's unnecessarily confusing. I pointed out, until I got tired of pointing it out; the Silver Bullion Market, (talking about what's actually available to buyers, ok?), is so small that a couple of rich families in Europe could get together an buy the whole fucking thing. And they might. Why not? The Silver market is like the powder hold in a an old wooden sailing ship; it might not explode; but then again it might; and it takes so little to do it. Capitalists love corners on markets. If you were clever you could sell 14th. of your holdings back into the screaming maw that had become the market, (with no silver available), and get your money back and keep the other t/4ths of the Silver for free. I find it very helpful to consider these kinds of scenarios when the market is depressed and not rallying, like it is now. (the silver market).

Tue, 01/08/2013 - 14:53 | 3133627 trav777
trav777's picture

why the hell would someone want to buy the silver bullion market?

You silverbugz need to have your heads examined...praying for a market corner so you won't be a bagholder

Tue, 01/08/2013 - 15:49 | 3133820 vamoose1
vamoose1's picture

super  post      it  amazes  me  that  half  a  dozen  hedge  funds   dont  quietly   informally  co ordinate  themselves   and   blow   those   thieving   motherfuckers  at   jp  morgue   off  the   fucking   face of  mother  earth 

there  is  such  a  thing  as  a  laydown  trade ...  they  are  admittedly  rare  but   from  time  to  time  they  occur ...  silver  has  a  33  year   double  top  at  50,  unheard  of  in  the  history  of  technical   analysis   take  out  50  and  its   67   the  same  day   headed  for  triple   digits

Tue, 01/08/2013 - 13:08 | 3133193 Pladizow
Pladizow's picture

If this Jananese "Gold Backed" ETF has a prospectus anything like the GLD, these Japanese pensions will NOT own any gold!

Tue, 01/08/2013 - 13:14 | 3133196 vast-dom
vast-dom's picture

WRONG! Gold will not explode up until the ponzi scam suppression is removed, even if they buy in 10%! Don't you get it yet Tyler? Gold should already be well above $2,000. 

Tue, 01/08/2013 - 14:15 | 3133364 Anasteus
Anasteus's picture

It's practically impossible to prevent gold price from rising once the positive sentiment toward physical metal starts prevailing worldwide, regardless of the degree of suppression. The risk of default would increase beyond acceptable limits; the COMEX market would collapse literally in hours (or nanoseconds). And if this were to happen the price would skyrocket not to the Moon but to the Sun.

And that is what's happening right now; a shift from paper to metal perception of gold. The fact that gold is not well above $2000 costs the manipulators probably an incredible amount of effort in order to preserve perhaps the last remnants of the paper gold illusion.

Tue, 01/08/2013 - 14:13 | 3133470 johnnymustardseed
johnnymustardseed's picture

Because they know that JPM would smash it again. Apparently the FED has decided that $1650 on gold and $30 on silver is a safe number for the fiat and that is where it will stay for now.

Tue, 01/08/2013 - 15:54 | 3133826 vamoose1
vamoose1's picture

well  put       the  operative   words  being        for  now

Tue, 01/08/2013 - 12:59 | 3133153 EL INDIO
EL INDIO's picture

How do you say bitchez in Japanese ?

Tue, 01/08/2013 - 13:04 | 3133177 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

How do you say bitchez in Japanese ?

chinpokomon

Tue, 01/08/2013 - 13:08 | 3133197 EL INDIO
EL INDIO's picture

Sounds like Pokemon !

Are you sure ?

I don’t want to order my T-shirt with a word that means something else.

(Thanks)

Tue, 01/08/2013 - 14:34 | 3133543 jonan
jonan's picture

BTW, the literal translation of "teme" is just a rude way of saying "you", rather than saying the more respectful form of "you" which is "anata"...you really gonna put "teme" on a t-shirt?

Tue, 01/08/2013 - 19:36 | 3134483 TwoShortPlanks
TwoShortPlanks's picture

The word you're after is "douseiaisha".

Tue, 01/08/2013 - 13:41 | 3133342 forwardho
forwardho's picture

Crap, I just got a cool tatoo with that ideogram at the center.

They told me it meant "recieves abundantly"

 

Tue, 01/08/2013 - 13:38 | 3133299 Tango in the Blight
Tango in the Blight's picture

http://translate.google.nl/#en/ja/bitches

..according to Google translate.

Tue, 01/08/2013 - 14:30 | 3133527 jonan
jonan's picture

???   (teme)

(cue jap accent and dramatic pronunciation) TEEEeemmmEEEE! gold-itchiwaaaaaaAAA!

*edit, lol hiragana characters come up as "???"

Tue, 01/08/2013 - 20:00 | 3134533 BigInJapan
BigInJapan's picture

Closest would be Kuso-onna.
It means "shit-woman".

Tue, 01/08/2013 - 13:16 | 3133231 Bangin7GramRocks
Bangin7GramRocks's picture

And if my nut-sack didn't have wrinkles it would be a tennis ball!

Tue, 01/08/2013 - 15:06 | 3133678 catacl1sm
catacl1sm's picture

I'm gonna put THAT ^^ on a T-shirt!

Tue, 01/08/2013 - 13:45 | 3133362 NIRee
NIRee's picture

In all honesty, with keynesian policies the focus is always to avoid the end game when the going gets tough.

So calling their debt policy a failure when kicking the can down the road is the strategy is not very clever. If anything they are the masters of fiat currencies.

Tue, 01/08/2013 - 14:32 | 3133536 Silver Bully
Silver Bully's picture

Yeah, yeah, yeah. The Japan Post Bank sits on one of the biggest piles of private cash (possibly the biggest pile) in the world. It is also the biggest holder of Japan's debt. If it even sniffs at the gold market, people will sit up and take notice. But they haven't and they won't. I mean, I'd like Ben Bernanke to give me a check for a billion dollars too, but it isn't going to happen (unless bread costs $1 million a loaf)

 

Tue, 01/08/2013 - 12:57 | 3133148 lolmao500
lolmao500's picture

http://www.businessinsider.com/debt-ceiling-deadline-february-15-march-o...

Surprise: We Might Hit The Debt Ceiling Two Weeks Earlier Than Expected Ooops.
Tue, 01/08/2013 - 13:13 | 3133215 LawsofPhysics
LawsofPhysics's picture

30 billion in interest daily?  Something seems amiss.  More importantly, to whom is all that interest going?

Tue, 01/08/2013 - 13:21 | 3133249 NotApplicable
NotApplicable's picture

Why widows and orphans, of course.

Tue, 01/08/2013 - 12:57 | 3133149 Freddie
Freddie's picture

Platinum Trillion Dollar coins - Bitchez!   I call them Krugmans.

Tue, 01/08/2013 - 12:59 | 3133158 Lost Wages
Lost Wages's picture

If this happens, I'm calling silver at $30,000,000,000 per ounce.

Tue, 01/08/2013 - 13:04 | 3133176 lolmao500
lolmao500's picture

I would be a quadrillionaire then!

Tue, 01/08/2013 - 13:06 | 3133181 EL INDIO
EL INDIO's picture

Assuming that Timmy had in mind a 1 oz coin, at 1574/oz Timmy wants a 635,324,015 % devaluation ! That’s what you’d call Hyper Inflation.

He must have attended a training course given by Zimbabwe’s central bank.

Tue, 01/08/2013 - 15:18 | 3133730 trav777
trav777's picture

dat be rayciss...what happened in rhodes, i mean zimbabwe, was all white people's fault

Tue, 01/08/2013 - 15:57 | 3133839 vamoose1
vamoose1's picture

   gideon  gonzo   presiding

Tue, 01/08/2013 - 13:00 | 3133163 Falconsixone
Falconsixone's picture

Maybe they're afraid the island would flip with the extra weight or maybe rockschilds told them they'll have to get rid of the radiation first.

Tue, 01/08/2013 - 13:01 | 3133165 fonzannoon
fonzannoon's picture

if they keep buying paper gold my guess is the banks will keep finding a way to make sure there is enough paper available.

Tue, 01/08/2013 - 13:05 | 3133178 Hyde_The_Id
Hyde_The_Id's picture

Hello BITCHES!  You are now in the presence of greatness.

Tue, 01/08/2013 - 13:11 | 3133198 fuu
fuu's picture

Grats on your first ever post after 45 weeks.

Tue, 01/08/2013 - 13:25 | 3133262 NotApplicable
NotApplicable's picture

It's time to play... Name That Sock-Puppet!

 

First clue: Obnoxious asshole.

 Hmmm... that doesn't narrow it down much.

 

Stay tuned for more clues!

Tue, 01/08/2013 - 13:38 | 3133327 Hyde_The_Id
Hyde_The_Id's picture

Yes, thank you.  It has taken some time to choose a character.

Tue, 01/08/2013 - 13:47 | 3133371 ParkAveFlasher
ParkAveFlasher's picture

You have chosen ... poorly.

Tue, 01/08/2013 - 14:26 | 3133493 fuu
fuu's picture

Whatever MynMaxGullyFromm.

Tue, 01/08/2013 - 14:54 | 3133632 Arrowflinger
Arrowflinger's picture

Perhaps he was tanning his Hyde with Boner

Tue, 01/08/2013 - 13:06 | 3133180 Dr. Engali
Dr. Engali's picture

Let me know when they start taking delivery, then we will have a story.

Tue, 01/08/2013 - 13:17 | 3133236 fonzannoon
fonzannoon's picture

I read yesterday that my old school district was trying to levy a 9.5% on residents or they would have to shut my high school down because of budget problems. So I went to the budget meeting last night. The place was absolutely packed. The first slide they put up showed that 80% of the 2013 budget was going to pay for pensions and benefits of retired employees. 80%!!! I knew things were bad but the math and the demographics by me would make Kyle Bass blush.

Tue, 01/08/2013 - 13:19 | 3133245 Dr. Engali
Dr. Engali's picture

That's unbelievable. How receptive was the audience to that?

Tue, 01/08/2013 - 13:26 | 3133269 fonzannoon
fonzannoon's picture

The 15% of the audience that was ballistic about it were told to shut up and that they "were the least educated people involved" for questioning the possibility of cuts to benefits.

The options on the table were to levy the tax or close several schools. That really accomplished nothing because the remaining teachers/administers etc. would not have lost their jobs. They would have just been transferre.

The audience was too concerned with yelling at each other over which schools should be closed. That seems to be the way they are leaning. The superintendant had cue cards from the crowd he was supposed to read. He started skipping over several of them and everyone started screaming that he was cherry picking the questions.

Long story short it went about as expected.

Tue, 01/08/2013 - 13:37 | 3133307 onewayticket2
onewayticket2's picture

similar story all over (unless you and i live in the same, dysfunctional town!).  it's sad....but the beatdown of the 15% informed should convince you that we're beyond the tipping point....

 

as a newbie here, help me understand how to play this slow boiling away of liberties and wealth....physical gold, guns and LT food storage?  what if, like diamonds, general, err,  government electric can make "gold" in a lab??

Tue, 01/08/2013 - 13:40 | 3133334 fonzannoon
fonzannoon's picture

my russian mother in law keeps telling me we need a dacha. i think she is probably right.

Tue, 01/08/2013 - 14:21 | 3133498 SAT 800
SAT 800's picture

I would go with the russian mother in law; and don't forget the Mosin-Nagants and the canned ammo. They are extremely good at this shit. Remember, there the ones who told the Nazi Panzer Armys, oh, fuck you you're not so tough.

Tue, 01/08/2013 - 14:29 | 3133521 fonzannoon
fonzannoon's picture

Damn right.

Tue, 01/08/2013 - 14:32 | 3133534 durablefaith
durablefaith's picture

Its the question really.

There are several options:

1) Go along to get along. Turn in your guns, gold, and your neighbors and get a job wearing government supplied boots. The DHS, FEMA, and TSA are still hiring.

2) Prepare to join the resistance. Buy domestic farmland, dig a hole for storing hub caps and fishing rods and other things to get the attention of metal detectors, and get to know your neighbors. Store food and ammo and prepare for the day when the local govt sells out to the feds and they come to "regulate" you into a city or a fema camp.

3) Go with your plan A, one way ticket to somewhere not on the immediate chopping block: simon black style.

With all three options, the survival rate eventually drops to zero. So my advice is look yourself in the mirror and make a decision you wont be ashamed of in eternity.

Tue, 01/08/2013 - 14:46 | 3133589 Panafrican Funk...
Panafrican Funktron Robot's picture

Land outside of cities and liquor are other good things to consider.  Liquor is easily tradeable and has an understood value by virtually everyone, and has medicinal properties as well (antiseptic, sedative).  It's also pretty easy to get a fire going with a small liquor pour.  

Tue, 01/08/2013 - 15:20 | 3133735 trav777
trav777's picture

they can already make gold in a lab.  Nuclear transmutation makes gold all the time.

Tue, 01/08/2013 - 17:37 | 3134182 auric1234
auric1234's picture

You can't manufacture gold. Diamonds are carbon-based (like you and I, but with a different structure). Gold is a chemical element (pure substance) and comes from the stars (supernova).

 

Tue, 01/08/2013 - 18:58 | 3134402 hoos bin pharteen
hoos bin pharteen's picture

You could probably pull it off in a particle accelerator, but the cost / oz would be astronomical.

Tue, 01/08/2013 - 13:37 | 3133319 Freddie
Freddie's picture

Union extortion. 

The administrators and union management needs to be tarred and feathered.

Tue, 01/08/2013 - 14:19 | 3133488 SAT 800
SAT 800's picture

Wow. that;s amazing. So, that's what it looks like at ground Zero; ehh? out there in the "real" world. Nobody can grasp that all these freeloaders are going to have to be thrown out of the lifeboat and live on Social Security. Reality is so hard. "Socialism is fine, until you run out of other peoples money to spend"--Margaret Thatcher.

Tue, 01/08/2013 - 14:26 | 3133514 Top_Kill
Top_Kill's picture

So the people in line for the massive retirement packages choose to fire the  other current teachers so that they can maintain their ridiculously huge retirement packages...SELF PRESERVATION BITCHEZ.

Only 20% left until they turn on each other. Get your popcorn!

Tue, 01/08/2013 - 13:28 | 3133274 NotApplicable
NotApplicable's picture

They are all public school graduates, so what do you think?

 

They drooled, flung poo.

Tue, 01/08/2013 - 13:30 | 3133287 fonzannoon
fonzannoon's picture

so did I....

Tue, 01/08/2013 - 13:25 | 3133264 LongBalls
LongBalls's picture

The doctor has issued his order. Taking delivery is what it is all about. More stories on delivery please. Until then its shoots and ladders.

Tue, 01/08/2013 - 13:30 | 3133286 Ace Ventura
Ace Ventura's picture

Bingo! As long as this is all a paper-based series of 'transactions', the bankstahs still win. It sure would be nice to know when the scam will no longer be sustainable by mere computer entries. Somewhere, somehow, a physical transaction will have to occur (even if it's to shuttle more metal to one of the Rothschild's vaults) of sufficient size, that will be the first publicly recognized domino?

Then again, they seem to be managing quite well so far.

Tue, 01/08/2013 - 13:06 | 3133182 DoChenRollingBearing
DoChenRollingBearing's picture

And if just 10% or so of us physical gold owners DECLINE to sell (esp. central banks), game over.  $55,000.

Tue, 01/08/2013 - 13:06 | 3133183 LawsofPhysics
LawsofPhysics's picture

Hhmm, does it matter if no one is willing to sell Japan the commodities they need to survive?

Tue, 01/08/2013 - 13:07 | 3133192 risk-reward
risk-reward's picture

This was called WWII

Tue, 01/08/2013 - 13:18 | 3133195 LawsofPhysics
LawsofPhysics's picture

Gee, glad to see someone gets it.  Same as it ever was as the outcome will be no different this time around.

Tue, 01/08/2013 - 13:28 | 3133280 LongBalls
LongBalls's picture

Brilliant.

Tue, 01/08/2013 - 18:35 | 3134306 Ghordius
Ghordius's picture

ehm... N/A
Their asset's in the US were frozen and pre-WW2 Japan was being embargoed for metals and oil - by the US

Today's Japan exports plenty - when you have something to trade...

Tue, 01/08/2013 - 13:31 | 3133288 forwardho
forwardho's picture

Indeed sir,With what perchance do they have to buy said commodities?

Their currency seems a bit risky to hold, what.

Tue, 01/08/2013 - 21:02 | 3134657 BigInJapan
BigInJapan's picture

In all the yearning for a weak Yen, not a single idiot on tv over here has once mentioned that every tick down in the Yen means higher prices for EVERYTHING in a country void of natural resources. Imported or domestically produced, it all has input costs priced in $.

A fact so glaringly obvious and so obviously ignored by Japanese media that it leads me to believe that the fix is now in with an unstoppable move toward an Asian monetary union of sorts.

Tue, 01/08/2013 - 13:06 | 3133185 kensdad
kensdad's picture

Good.  We need a massive buyer of paper gold to offset the sellers of paper.  The Japanese would make the perfect foil.

China can buy the physical stuff while Japan buys the paper.

The sellers in the West will get a golden enema.

Tue, 01/08/2013 - 14:29 | 3133525 Top_Kill
Top_Kill's picture

WRONG! More flow gives more dry powder to short.

Tue, 01/08/2013 - 13:07 | 3133187 americanspirit
americanspirit's picture

Pension funds are in deep trouble worldwide. It's only a matter of time before at least some of them realize that putting a significant portion of their assets into physical gold could kick off a gold rush that would enable them to recover from their losses of the past few years. Then when the price of their gold assets had increased by 500-1000% they could sell into the frenzy that had created and sit back and watch the fun from the sidelines.

Tue, 01/08/2013 - 13:21 | 3133250 fonzannoon
fonzannoon's picture

Americanspirit I meant to put my post by you and put it above by accident. Pensions can have all their problems solved through your property taxes. Right up until they can't.

 

Tue, 01/08/2013 - 13:25 | 3133255 MillionDollarBoner_
MillionDollarBoner_'s picture

 americanspirit ...Jamie?

Is that you?

Listen to me...go into the Light!

Now reach back into our past when you used to have an open mind, remember that? Just try to use that for the next couple of minutes.

There is no death. It is only a transition to a different sphere of SIFI.

Ignore Lloyd... He lies to you. He tells you things only a bankster can understand. He has been using you to restrain the gold price. To you, Lloyd is simply is another bankster. To us, he is The Beast.

(Nods to Poltergeist - 1982)

Tue, 01/08/2013 - 13:36 | 3133310 NotApplicable
NotApplicable's picture

What's funny is that when I tell people that their pension is worthless, I always get the reply, "Oh, ours is okay, its funded at X%, which is much better than the [local police/fire/teachers pension] which is only funded at Y%" (where X > Y).

I then point out that both pension plans used to have a much higher number, and that all of them are approaching zero, just at different rates depending upon the insanity of the math involved (usually union dependent).

Then it's a quick mental trip into our future of living in ZIRP World to see that there is means of getting ahead, other than tangible assets.

Tue, 01/08/2013 - 15:00 | 3133658 Arrowflinger
Arrowflinger's picture

They usually tell me that theirs is in a "stable value" fund. I point out that stable value funds owned a boatload of MBS, CDO's, CLO's and CDS worth 25 cents on the dollar. Congress forced FASB 157 on the accountants so that the funds can LIE that those things are still at stated value.

Tue, 01/08/2013 - 15:22 | 3133740 trav777
trav777's picture

ZIRP is a symptom, not a cause.

You need to understand how yield gets paid and what could cause yield not to be able to be paid.

Yield=growth.

Tue, 01/08/2013 - 15:05 | 3133671 hidingfromhelis
hidingfromhelis's picture

He who panics first, panics best.

Tue, 01/08/2013 - 17:34 | 3134175 epwpixieq-1
epwpixieq-1's picture

It may as well be, but there is a fundamental assumption that the pension funds DO CARE about wealth preservation to wealth extraction, and that the pension fund managers DO CARE about long term view ( 5 -10 years), when they will be long gone from the fund management compared to the 1-3 years time line an their CURRENT salary/pay-check/bonus  AND NOT DISTURBING the system and the powers that rule.

This is probably true for the pension funds from a group of Countries like: Russia, Brazil and Chile. Countries that are comparatively wealthy and have a lot to gain from changing the current financial order.

 

Tue, 01/08/2013 - 13:08 | 3133194 905ozs
905ozs's picture

Japan was bought & sold in 1946.

More chance of a pink elephant flying, landing & my (gorgeous girlfriend) accepting anal penetration from it...whilst sober :)

ZH/Tyler, u know rothschild Inc run the system, why you posting non-realistic crap?

Tue, 01/08/2013 - 13:11 | 3133207 MillionDollarBoner_
MillionDollarBoner_'s picture

And if just 0.00001% of Japanese Pension Assets shifted into my bank account, my prospects would explode :O)

'Bout as much chance of happening, 'tho...;o(

 

(Disclosure: long all PMs, incl. Au, Ag, Pt, Pb...)

Tue, 01/08/2013 - 13:11 | 3133209 youngman
youngman's picture

I think they are buying now...you would not want to telegraph it though....and I don´t think they will store it in some New York Or London vault....all I hear are buyers.....who is selling....???

Tue, 01/08/2013 - 13:11 | 3133211 Inthemix96
Inthemix96's picture

A friend I have runs a warehouse business for a major high street brand and took on a Japanese fella last week.

He was put in charge of looking after supplies.  He told me after his first day at work, for eight hours no-one had seen hide-nor-hair of him.  So my mate was not in the least happy as you can imagine, so he went looking for him, after going down one of the massive isles of products the Japanize bloke jumps out half way down and shouts,

"SUPPLIES!!!!!!!!"

I think he sacked him??  Fuck knows what for?

Tue, 01/08/2013 - 13:25 | 3133265 forwardho
forwardho's picture

Oh, very well done Bruce,

Very well done.

Tue, 01/08/2013 - 13:28 | 3133275 Inthemix96
Inthemix96's picture

Sorry, its my imature and irresponsible side coming out.  Just like the politicians and wankers.. sorry bankers that make me like this.......

:-)

Tue, 01/08/2013 - 13:28 | 3133276 Thisson
Thisson's picture

That was really funny, Inthemix96!!!  Thanks for posting that - haha!

Tue, 01/08/2013 - 13:36 | 3133317 Inthemix96
Inthemix96's picture

Thanks Thisson, but thats nowt.

A friend of my wifes partners husband who makes $86 an hour had walked into her home and found out that her husband had been having an affair.  She waited till he was asleep that night and snuck upstairs and cut his cock off.

Now when she got in the car and was flying down the motorway she didnt know what the hell she was going to do with the severed cock so chucked it out the window.

Now Paddy and Mick the two Irish fellows were going along in their van when the cock hit their windscreen.

Quck as a flash, Paddy says to Mick, "Bejesus son, you see the size 'o' that cock on that fly?"

;-)

Tue, 01/08/2013 - 14:17 | 3133485 spekulatn
spekulatn's picture

Agree with Thisson. You are funny, Inthemix96.

 

http://www.youtube.com/watch?v=4I9CwlPk8GE

Tue, 01/08/2013 - 14:25 | 3133512 Inthemix96
Inthemix96's picture

Cheers mate, in these times of universal hardship why not try and lighten the load?

Good folk will prevail friend, and if you lose your heart and your laughter what the fuck is left to fight for?  You have to laugh mate, if you didnt you would cry.  I try my best to keep peoples chin up, and the best way I have always found is making them smile.

We aint all blood sucking parasites, some of us are just us.  People.  Keep on keeping on friend, we will find a way.

:-)

Tue, 01/08/2013 - 14:25 | 3133511 zerotohero
zerotohero's picture

been sic with flu for 2 days - i needed that _ thanks

Tue, 01/08/2013 - 14:28 | 3133517 Inthemix96
Inthemix96's picture

Anytime friend, anytime.

Chin up, eyes wide, we aint done yet.  And a happy new year to all you bitchez.

Tue, 01/08/2013 - 13:15 | 3133226 PaperBear
PaperBear's picture

Moreover if 0.1% went into silver, the silver market would explode.

Tue, 01/08/2013 - 15:27 | 3133755 trav777
trav777's picture

...the plaintive wail of the silverbug

Tue, 01/08/2013 - 15:31 | 3133765 akak
akak's picture

... the moronic and completely disingenuous wail of the bond-buying bagholder.

Tue, 01/08/2013 - 13:17 | 3133233 IamtheREALmario
IamtheREALmario's picture

Not if it is paper gold and the counterparty is adequately hedged with derivatives ... isn't that how the whole dollar based world works now?

Tue, 01/08/2013 - 13:17 | 3133235 chaartist
chaartist's picture

If only the banking cartel does not control the game. It will come eventually if backed by bigger players like China and Russia in my opinion. I think the current market structure still favors US in regards to Japan if they want to destroy their market if someone threatened to redirect part of pension funds to gold. They are not stupid at math I think when it is about their game and their rules. But I know shit :)

Tue, 01/08/2013 - 13:18 | 3133237 Scisco
Scisco's picture

It is the common person that is always screwed. If pensions funds tried to allocate 1%, 2% or 5% into gold, I suspect they would do so through an ETF. In turn, it would probably implode leaving the common person up shit creek.

Tue, 01/08/2013 - 13:18 | 3133238 Smuckers
Smuckers's picture

...And all the children will have to learn a new game once rock covers paper.

 

Tue, 01/08/2013 - 13:19 | 3133241 905ozs
905ozs's picture

Paperbear
Paper dreams...

Tue, 01/08/2013 - 13:18 | 3133242 secret_sam
secret_sam's picture

Can a pension fund REALLY invest in gold?  I mean...on a practical level.  It'd seem there may be barriers other than understanding which result in the relatively low rate of investment into gold.

    ------------

PS: "I crush the rush!" -- Phil Anselmo
http://www.youtube.com/watch?v=81CQqZ5KNt8

Tue, 01/08/2013 - 13:26 | 3133271 Fred Hayek
Fred Hayek's picture

Why not?  It's a tier I asset under Basel III rules.  Can't get better than that.  As long as you get actual gold and not the paper, dead end fraud of an ETF statement.

Tue, 01/08/2013 - 13:34 | 3133296 secret_sam
secret_sam's picture

Does any given pension fund have a vault and a security department?  A fleet of trucks to collect the commodity?  A staff of agents operating internationally who can make the necessary purchases?

Tue, 01/08/2013 - 13:44 | 3133359 SAT 800
SAT 800's picture

look up bullionvault.com on google; it's all taken care of already; and there are thousands of Americans who own gold and silver there; and it;s all real; it;s all there, and it;s very, very easy.  And legal.

Tue, 01/08/2013 - 13:46 | 3133369 SAT 800
SAT 800's picture

The purchases are made at the LBM; which has existed for a long time. (London Bullion Market). All the details are already taken care of.

Tue, 01/08/2013 - 13:48 | 3133377 SAT 800
SAT 800's picture

You can actually put your IRA into one hundred percent real Silver Bullion, Vaulted; allocated; no jokes. I'm not making this up; I've already done it for a couple of friends of mine. Look it up on Google. Bullionvault.com.

Tue, 01/08/2013 - 14:09 | 3133453 secret_sam
secret_sam's picture

Can a pension fund look 'em up and just send a purchase order for $5 billion in gold, you think?

Tue, 01/08/2013 - 14:30 | 3133532 SAT 800
SAT 800's picture

In a case like that I refer you to Kyle Bass and his experience as a fiduciary agent for the University of Austin. He encouraged them to take allocated signature delivery of their gold; which they did. I think $5Billion is not what bullionvault is set up for; but you could ask.

Tue, 01/08/2013 - 15:21 | 3133738 AE911Truth
AE911Truth's picture

So how about if a pension fund took delivery of $50 billion in physical silver?

Wouldn't that do it?

Tue, 01/08/2013 - 16:33 | 3133972 secret_sam
secret_sam's picture

Do what?  I don't think it would blow up the price of GOLD, if that's what you mean.

Tue, 01/08/2013 - 13:20 | 3133247 Sutton
Sutton's picture

They'll put the money into what their NY Overlords tell them, meaning GLD, which actually owns no gold.

Another Japanese investing success story.The last shrewd, independent minded Jap  was killed by my uncle on Iwo.

Tue, 01/08/2013 - 13:56 | 3133411 SmoothCoolSmoke
SmoothCoolSmoke's picture

Wrong..... London Overlords.

Tue, 01/08/2013 - 14:53 | 3133628 fijisailor
fijisailor's picture

No it was that guy they found in the 70s hiding in a cave in Guam who thought the war was still on.  Or else it was my friend Fumi who is a cartographer and sailed his boat around the world.  He bought me drinks all night one time and said he owed it to me because Japan was rich and Americans had bought him everything when America was rich.

Tue, 01/08/2013 - 13:25 | 3133251 Jack Burton
Jack Burton's picture

Japanese economic and fiscal leaders believe that just injecting some inflation into the Jpanese financial system can solve a whole host of systemic economic problems?  That reminds one of the old saying about if the only tool you have is a hammer, then everything looks like a nail.

So true in this case. Japan is maintaining one of the highest standards of living in the world even as growth remains elusive. Since population is now moving negative Japan may well get by with a shrinking GDP as less demand from less people shrinks the overall economic pie.

Since older Japanese have saved heavily for retirement and Japanese hold much of their own debt, they do not face troubles like Europe and the USA. With less people going forward then less demand on resources and more of everything for the remaining people might not be so bad a thing. Europe afer the black death bounced back on the back of more land and resources and more value attached to labor. Japan, if well managed, can survive the problem of too many old folks for a few decades and then bounce back with more space, more value to labor, more resources, more food and less pressure on the land in a crowded nation. Their only fear would be outside foreign threats. I suggest Japan build a nuclear force and do just like Russia has. Issue a military policy that says that "First use of nuclear weapons is resevred for the defense forces should any foreign force enter their territory that can not be dealt with by the nation's convetional defense force" First use means tactical nuclear weapons used over a force invading the nations territory.

Safe behind this force, Japan could remain a wealthy prosperous and more long term oriented economy of say 75 million people, instead of searching for population growth to gain GDP growth. Why should Japan give up it's culture and race just to satisfy corporations wanting a bigger market in Japan and a bigger pool of labor at lower wages in Japan?

Japan should go it's own way. It has proven it can compete and survive in a global capitalist system, it just may not be as BIG a nation as a share of world trade. With a smaller population to service who cares.

Tue, 01/08/2013 - 13:38 | 3133328 Thisson
Thisson's picture

You are looking at everything way to abstractly.  Japanese haven't invested as you claim.  The term "investment" implies that stockpiled resources were consumed in order to produce "capital" which is a fancy word for equipment or infrastructure that will yield more in increased productivity (over time) than was consumed to create it.  This doesn't describe Japan.  Japanese people turned over their stockpiles and received paper receipts for them.  The stockpiles were squandered, not used to produce capital.  Now the chips will fall where they may.

As for Europe, what you describe is also rendered too abstractly.  After the plague hit, there were more natural resources available per capita, so the survivers were wealthier per capita.  The same thing will happen in Japan, but not through proper management.  It will happen as the old people don't receive their pension income and die off earlier than expected, leaving more resources for the survivors.  Japan, a tiny island with limited resources, is not going to succeed through a military strategy against the rest of the world, who are not going to cave in to nuclear blackmail. 

Tue, 01/08/2013 - 14:55 | 3133616 secret_sam
secret_sam's picture

    Japanese people turned over their stockpiles and received paper receipts for them.

Japan DOES have one of the most sophisticated public infrastructures in the world.  That's real capital.

It also has a highly educated population with a strong sense of community and personal discipline.  This is not considered "capital," but LABOR is a very important component of any modern economy.

Tue, 01/08/2013 - 18:41 | 3134363 Ghordius
Ghordius's picture

+1 often forgotten

Tue, 01/08/2013 - 14:49 | 3133601 fijisailor
fijisailor's picture

Nuclear contamination is also another big wildcard in Japan's future.  The truth is being hidden by the govt.

Tue, 01/08/2013 - 13:24 | 3133260 zilverreiger
zilverreiger's picture

SILVER

According to an article on Mineweb, the opening day sale of 3,937,000 oz of Silver Eagles is a NEW RECORD for the 1-day sales of this coin.  This number is 23% higher than the opening day sale in 2012, which was higher still than that of 2011.  So the trend in exponentially higher purchases of Silver coins by the general public is clearly evident.

 
However, the shocker is this: The opening day sale for Gold Eagles amounted to a dollar value of $82 Million (50,000 oz), while the opening day sale for Silver Eagles was a shocking $118 Million (3,937,000 oz)!  So, Eric Sprott has been right all along, and people are putting as much, if not more, money into Silver as they are into Gold, and the price ratio is still an incredibly cheap 55:1 for Silver.  Amazing.

Tue, 01/08/2013 - 13:43 | 3133351 Thisson
Thisson's picture

Doesn't matter.  Silver is a real asset and will maintain its value, but it is not a money (it is merely a money substitute) and will thus not gain as much relatively in comparison to gold (which will increase its inherent "money premium")  as debts are destroyed.  You silver bugs are in for a disappointment compared to gold.  Furthermore, you haven't accounted for the significant risk of rising real interest rates as debts are destroyed, which could limit the real gains of both silver and gold.

Tue, 01/08/2013 - 13:52 | 3133392 zilverreiger
zilverreiger's picture

sorry forgot to say this is a quote of someone elses silverdoctors comment

Tue, 01/08/2013 - 13:53 | 3133395 ParkAveFlasher
ParkAveFlasher's picture

"Money" is an asset substitute. 

And if you understood 1% of that conundrum, your head would explode.

Tue, 01/08/2013 - 13:53 | 3133399 SAT 800
SAT 800's picture

Been doin my homework on this shit for forty years. participated in the 1979-1980 silver bubble. you don't know what your're talking about; I'm lazy; I'm not going to write a book trying to explain it to you. Start reading books. "but it is not a money" is such a stupid statement, it doesn't even really deserve a reply; but I figure somebody might actually pay attention to you, so I did.

Tue, 01/08/2013 - 15:01 | 3133659 secret_sam
secret_sam's picture

What's money?  If silver is money, is wheat flour money also?

It doesn't take a genius to call someone stupid, you know.

Tue, 01/08/2013 - 21:44 | 3134769 Thisson
Thisson's picture

The silver bubble and the hunt brothers are completely off topic, and have nothing to do with the question of whether silver is money (it is not).  I read plenty of books, which should be obvious since I've already stated an understanding of the relationship between PMS and real interest rates, something that is often omitted from discussions of PMs here on ZH.

Tue, 01/08/2013 - 13:55 | 3133403 SAT 800
SAT 800's picture

Yeah; slowly, slowly the obvious gains converts. one person at a time, probably; but it;s starting to roll.

Tue, 01/08/2013 - 13:26 | 3133268 AnAnonymous
AnAnonymous's picture

The metal market would explode...

Either Japanese have kamikaze genes, and will take the option that would vaporize their access to goods...

Or they will keep hanging by the teeth, consuming what it is left to consume in this 'american' world put on the path of depletion of resources by 'americans'...

That is such a dilemna. Wooo, you need a fortune teller to tell one option from the other. Especially one knows Japanese are 'american'.

Tue, 01/08/2013 - 13:45 | 3133365 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous said:

That is such a dilemna. Wooo, you need a fortune teller to tell one option from the other. Especially one knows Japanese are 'american'.

What a stupid comment.

And that is the same stupidity as ever. As stupid as requesting that a cat who evolved from specific environmental pressures turn immediately into another type of cat due to change in environmental pressure and climb into your wok voluntariously.

Tue, 01/08/2013 - 13:27 | 3133272 FranSix
FranSix's picture

The 40-year inflation-adjusted average for gold in 2009 constant dollars using shadowstats is ~$1675/oz.  that was three years ago, prior to QE2, ,QE3 ,QE4.

If QE4 is found not to be enough to hold back a treasury market rout, or corporate bond market liquidity trap, then the amount of inflation would probably be double the assumed 17% and come in at 34%.

Tue, 01/08/2013 - 13:28 | 3133279 905ozs
905ozs's picture

Sutton....
Say Rothschild, I dare you:)

Tue, 01/08/2013 - 13:28 | 3133281 SmallerGovNow2
SmallerGovNow2's picture

WOW!  Check APMEX website and look how many silver eagles are out of stock!!!

http://www.apmex.com/Category/160/Silver_Eagles___Uncirculated_2013__Prior.aspx

Tue, 01/08/2013 - 13:30 | 3133283 slightlyskeptical
slightlyskeptical's picture

Wow. Not hard to see which direction this crowd runs.

Conversely, if 1% of the current gold holders were to sell. Gold would also explode...downwards.

The if my aunt had balls thing is basically what this article is saying.

Japanese pension funds will continue to buy Japenese tresuries as that is the only way to keep their system from imploding.

Tue, 01/08/2013 - 13:43 | 3133356 FranSix
FranSix's picture

This year was the year of dishoarding for bullion holders, much as people would like to ignore it.  In the last month alone, enough gold was sold to cover one year's mine supply, so either contracts were raided from client accounts, or central banks leased more gold again.

Dishoarding only has the effect of providing leverage to an illiquid market for bullion, so the expectation is that price aught to rise.  Secondly prices remained stable because they are trading below their 40-year inflation-adjusted average.

Tue, 01/08/2013 - 14:02 | 3133433 SAT 800
SAT 800's picture

Jesus Christ you can't even understand arithmetic. If 1% of current holders of anything decided to sell, it'd be another down day in the market. The point is that 1% of the Japanese Savers; which represents a lot of people and a lot of dollars, tried to enter the gold market in a dis-orderly manner, eg. all at once; it would cause a price explosion. the point of the story is the relative SIZE of the gold, or silver, markets compared to the savings on the sidelines; by the way; or not entirely, by the way; this also applies to the dollars on the sidelines, here, in the US. Currently in money market funds; bond funds, etc.

Tue, 01/08/2013 - 13:30 | 3133284 slightlyskeptical
slightlyskeptical's picture

Wow. Not hard to see which direction this crowd runs.

Conversely, if 1% of the current gold holders were to sell. Gold would also explode...downwards.

The if my aunt had balls thing is basically what this article is saying.

Japanese pension funds will continue to buy Japenese tresuries as that is the only way to keep their system from imploding.

Tue, 01/08/2013 - 13:31 | 3133290 AccreditedEYE
AccreditedEYE's picture

BTFD... IN GOLD!

Tue, 01/08/2013 - 13:38 | 3133326 unplugged
unplugged's picture

“If 1 percent of their total assets shift to the metal, the gold
market would explode.”

I call bullshit - yet another false alarm.

Tue, 01/08/2013 - 13:42 | 3133346 drivenZ
drivenZ's picture

exactly. Let me know when that shift happens. I won't hold my breath though. 

Tue, 01/08/2013 - 14:05 | 3133444 SAT 800
SAT 800's picture

It's not an alarm of any kind; false or not; it's a comparison in the size of the two markets. Wake the fuck up.

Tue, 01/08/2013 - 13:40 | 3133337 drivenZ
drivenZ's picture

why buy gold when the central bank is buying equities?

Tue, 01/08/2013 - 13:41 | 3133339 jubber
jubber's picture

and this from earlier today  China's Gold Volume “Shot Through The Roof” Yesterday Ahead Of Lunar New Year

Submitted by Tyler Durden on 01/08/2013 - 08:18
Reuters report that Asia's physical market has picked up so far this year, with buyers tempted by last week's big drop in prices -- when prices retreated to as low as 1,626 per ounce -- and on demand ahead of the Lunar New Year, traders said. The trading volume on the Shanghai Gold Exchange's 99.99 gold physical contract shot through the roof on Monday, hitting a record of 19,504.8 kilograms, after double-counting transactions in both directions. "Physical demand is very strong," said a Beijing-based trader. "It's a combination of the attraction of lower prices as well as pre-holiday demand." But such appetite could waver if prices recover towards $1,700, he added...

 

Could get very interesting if anyone tries to frontrun this?

Tue, 01/08/2013 - 13:43 | 3133357 Bansters-in-my-...
Bansters-in-my- feces's picture

...............................  iF  ..............................................!

 

Tue, 01/08/2013 - 14:59 | 3133654 secret_sam
secret_sam's picture

The Lorax said "Unless..."

Tue, 01/08/2013 - 13:46 | 3133366 sansnobel
sansnobel's picture

The price of gold will do whatever the market riggers of the world(Central Banks) tell it to do.  Just like every other market has.  With an unlimited supply of digital trading media that can be conjured into existence at the drop of a hat and be used working in coordination with other Central Banks, they can pretty much do whatever the fuck they want with any market.  The only thing that will bring the system down is a collective effort by anybody with a fucking bank account going and simultaneously withdrawing at the same time.  But they are very good at maintaining faith that everything will be alright, so the music goes on until people reject the communist Oligarchs which I don't see happening anytime soon.  One thing about this little game of modern day slavery is that as long as they continue to give the masses what they want they will gladly be humble little serfs that don't mind an occasional jackboot on their necks.

Tue, 01/08/2013 - 15:11 | 3133701 ivars
ivars's picture

Silver chart I tried to post but messed up and image was missing:

 

Quaterly  expires has marked 9 out of 10 trend changes over last 2 years. Now we are bottoming out:

 

http://saposjoint.net/Forum/viewtopic.php?f=14&t=3214&p=40662#p40662

Do NOT follow this link or you will be banned from the site!