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“Pension Money Invested In Bullion Is 'Peanuts' ... At The Moment”
“Pension Money Invested In Bullion Is 'Peanuts' ... At The Moment”
Today’s AM fix was USD 1,663.50, EUR 1,272.37 and GBP 1,035.35 per ounce.
Yesterday’s AM fix was USD 1,653.75, EUR 1,261.06 and GBP 1,028.07 per ounce.
Silver is trading at $30.40/oz, €23.39/oz and £19.04/oz. Platinum is trading at $1,591.50/oz, palladium at $679.00/oz and rhodium at $1,150/oz.
Gold climbed $11.80 or 0.72% in New York yesterday and closed at $1,658.20/oz. Silver surged to a high of $30.534 and finished with a gain of 0.73%.
Cross Currency Table – (Bloomberg)
Gold is hovering near $1,660/oz Wednesday as investors await policy decisions by the Bank of Japan and the European Central Bank -tomorrow, as physical buying picks up in Asia.
Gold tumbled last week after investors were spooked by the U.S. Fed minutes which grew concerns about quantitative easing being toned down.
Yesterday, the premiums on gold shipments to India rose to their highest level in two months as traders rushed to place orders for the metal ahead of a potential rise in import duty.
The iShares Silver Trust, the world's biggest silver-backed ETF, rose to 10,112.22 tonnes on January 7th, the highest since May 2011.
Bloomberg reported yesterday 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.
Gold in Japan’s currency reached a record 147,780 yen an ounce on the first day of trading in the New Year - January 2nd, after climbing 21% last year.
The World Gold Council's former Tokyo representative expects that Japanese pension funds will likely double their investments in gold-backed ETPs to 100 billion yen by 2015. 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, said Itsuo Toshima, who represented the Tokyo office of World Gold Council for 23 years through 2011.
XAU/JPY, Quarterly – (Bloomberg)
New Prime Minister Shinzo Abe’s pledge to spur inflation to 2 percent at the end of the yen’s appreciation means Japanese pension funds now have to hedge against rising prices and a currency decline after two decades of stagnation.
Japanese pension funds are set to diversify some of their massive holdings, worth nearly $3.4 trillion into gold bullion.
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.
“Bullion’s role as an inflation hedge, long ignored by Japanese fund operators, has come under the spotlight thanks to Abe’s economic policy,” Toshima, who now works as an adviser to pension-fund operators, said in an interview today in Tokyo.
“Gold may be a standard asset-class in the portfolio of Japanese pension funds as Abe’s target is realized.”
Nikkei Index, Quarterly – (Bloomberg)
“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.”
As Japanese pension funds shift to the yellow metal, many pension funds internationally will follow - both corporate and state.
While pension funds internationally manage assets in the trillions, gold remains a tiny market and above ground refined investment grade gold an even smaller market.
For breaking news and commentary on financial markets and gold, follow us on Twitter.
Gold barely changed; physical buying supports - Reuters
Gold Trades Sideways in Asia; Precious Metals Lower – Wall Street Journal
Curbing gold demand as panacea for economic ills not a good sign – India Times
Highest Ever One-Day Sales for American Silver Eagles? – Coin Update
Dr. Doom' -"I want to have gold as an insurance policy" - CNBC
Nine big predictions for markets in the year ahead - MoneyWeek
"Trillion Dollar Tooth Fairy" Straight "From The Land Of Fiscal Make Believe" – Business Insider
US Mint Sells Massive 3.9 Million Ounces Of Silver Coins In First Few Days Of 2013, Triple December's Total – Zero Hedge
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Only so many peanuts to go around really. It's not like you can just grow them......unlike gold.
But you can eat them.....which is a plus.
This piece from the NYT article in the ZH news clips is interesting.
http://www.nytimes.com/2013/01/09/business/a-bold-dissenter-at-the-fed-h...
"Mr. Lacker, 57, often uses the word “humility” in describing his views. He means that the Fed should recognize that its power to stimulate the economy is limited, both for technical reasons and because it should not encroach on the domain of elected officials by picking winners and losers."
At least one of the Fed understands the situation. At this point in time the situation is out of control once Honest Abe pulls the gold trigger on gold and by proxy Silver. JPM and GS are going to be vapourised over night in one tiny decision to leverage real gold to back their pensions. Not paper gold, real gold. All that can happen after than fact is other governments start forklifting the true wealth into their pension coffers.
God this situation is getting weirder and weirder by the day.
CPL a guy like Lacker is there to make some people think there is a semblence of reality involved.
There is none. It's the never ending rabbit hole.
Call me putty headed but I do not believe SLV has allocated (non-rehypothecated) silver. That statement from Indian authorities that said they need gold-like investments to stem demand for real gold reminds me of this. I hope I am wrong.
yes, the plethora of ETFs are intended to absorb demand that would otherwise go toward real commodities and create trouble.
Not sure why you were downvoted for stating factual information. There's a reason supply is so tight given suppressed prices.
All good ZH particpants have people that follow them to down vote them. lol After a while you tune it out if you want to chatter on. Can't make everyone happy.
Fuck Lacker and the Chilton he rode in on.
Only one thing to say: Bring. It. On!
He who buys first buys best.
The early bird may get the worm, but the second mouse gets the cheese.
Buy my ocean front property in Arizona. Presented by Maddof and backed by Corzine. What could go wrong?
The Europeans had large gold and silver holdings last time, not much good it did when the tanks started rolling.
The smart ones saw the tanks rolling and used their PM's to get the hell out.
Same thing happened in Vietnam.
You probably wouldn't know that because we don't teach history in our public schools anymore.
Haha, the smart ones got shot or gassed and their gold extracted from their mouth and placed in bucket with all the other teeth.
"to get the hell out."
Nowhere to run this time, billions of unfunded liabilities will have go. The liquidation process really does not care who has gold and who doesn't...Europeans were probably the largest gold holders and they just wiped each other out. I guess if you build a space station on the moon you might be able to run, well, for a while.
And what about the not-so-smart ones?
They got shot and gassed too, the liquidation process don't give a shit. They just didn't get their teeth removed.
What is with the gassing and shooting stuff? We are Americans. We enter serfdom the hard way. One at a time. Just make sure my EBT card works at the tit bar. Is that so fuckin much to ask?
Whores accept credit?
When did that start happening?
They accept lies too. At least they used to....
Oh they still trade freely in lies...
When the cavemen would run out of gold.
Well CPL, you can donate to political campaigns via credit card..so yeah.
You've got it reversed there Amigo....you only hear about the stupid, slow, or unlucky. Most of the smart ones made it to America.
Good luck tracking them down.
You have nowhere to run buddy, they will be hacking each other up on every land mass this time, not like last time where is was confided to Europe, Asia and north Africa.
I wasn't planning on running buddy.
Chances are you will be either be hacked or hacking others by the time it's over with... whether you have a gold piece is fairly irrelevant.
Sorry Landotfree but that just ain't gonna happen. Who will be the ones hacking everyone? U.S soldiers? Do you have any idea what their facebook status and tweets would look like?
We probably are becoming a 3rd world country but we will be classy about it.
"classy about it"
There is nothing classy about getting liquidated.
Nowhere to run? Alcoa beat and Facefart is pushing $30. Rejoice.
All your comments are only to say "Give up, we're all gonna die."
The relatives of my ancestors were all murdered, between 1917 and 1920, in two different parts of the world. Even their villages were destroyed. I have no family history to explore, except what I learned from my grandparents' memories, who were children when they came to the New World.
I exist because my ancestors did not say what you are saying now.
Should I do less than what they did?
GetZeeGold: "The smart ones saw the tanks rolling and used their PM's to get the hell out. Same thing happened in Vietnam."
I don't know where you get your information. Vietnam hasn't been known for PMs. And by the way, I am an American citizen from Vietnam. I keep catching you posting nonsense and I'll keep nailing you on it.
Yet, the current Vietnamese Govt is trying to suppress the Gold trade...Have you been keeping up on current events?
We teach history, but in a sports analogy, we only teach "the highlights" (i.e the touchdowns, interceptions ,etc); not the "boring" 3rd-and-11 that actually changed the game.
The only way this system gets fixed is if the Boomers wake up. ANd the only way they wake up....is if they lose EVERYTHING in their pensions and 401Ks. Which the next big market crash will do, IMO.
"The only way this system gets fixed is if the Boomers wake up. ANd the only way they wake up....is if they lose EVERYTHING in their pensions and 401Ks. Which the next big market crash will do, IMO."
What if their pensions and 401Ks only blow up in real terms, but not nominal terms? That's essentially what's been happening since 2008. No outrcy.
My neighbor down the block is a Cambodian who used his gold coins to bribe his (and his family's) way out of Cambodia into Vietnam and then from Vietnam to Canada during those coutnries Dark Times.
My my...another young man unfamiliar with history spouting nonsense....let's just avoid talking about the "Europeans" that held their gold in tonnage and let's discuss what you believe is important and that is the "little" guy's gold measured in lbs or ozs....most of those trying to escape were forced to smuggle their wealth out and gold provided the most portable method of getting with "what you could carry".... diamonds were a distant second and silver was too unweildy......but carrying two bushels of corn on your back to bribe the border guard didn't work so well.......gl
Right now people are saying "the tanks are coming" ( the system is going to collapse) and we are being laughed at. I'll bet people were being laughed at then as well.
You're probably being laughed at because you've ALWAYS been saying "the tanks are coming."
Boy, wolf, etc.
When they start buying....and they have to have these conversations when they meet every month....you would think....they will do it secretly...call it other assets or something...their options are getting less and less...the 8% annual reaturn is gone....I think now the mindset has to change to capital security....not return on capital...
Nope, their mindset is to expropriate whatever amount is necessary to make up for the shortfall.
I'll keep my gold and silver and take a bucket of peanuts to throw at the paper pushing monkeys.
Abe should wait until the JPY is actually worth something.
Come to think of it, better to buy bullion before the currency completely collapses.
Short Treasuries Long Gold. Switch to GOLD/EUR when EURO hits 1.4 as China stimulates a bit more its economy and people feel relieved, yet the stimulus will be small and the strength of EUR will compound periphery problems. Do it when the spreads tighten in periphy while everyone is jumping on the bandwagon that austerity ~works~. EUR strength is immolation of the Austerity. So you switch your Gold to EUR at that point. Then periphey gets into real trouble and then EUR gets smacked in the face. THen money leaves EUR to go both in Gold and USD. USD gets strong in relation to EUR, and treasuries have a last knee-jerk-I-am-safer-than-Europe. Then short more Treasuries and switch your Gold back in USD.
ON HYPERINFLATION. To create that we need the increase in spending due to rising interest rates to grow faster than revenues while we look like we are getting back to normal. In other words, the economy pick-ups, the tax revenues pick yet beause we have so much debt, the impact of rising long bond yield makes costs rise faster than revenues. That is check mate and hyperinflation.
To achieve game over, all well intended Gold bugs who want to make money and destroy the current monetary regime should be doing their part and prudently short some treasuries strip. Be a good Gold bug, bankrupt the US by forcing the expenses on interest rates to achieve escape velocity versus tax revenues even during the upturn!
i heard back in the day that uncivilized people sewed gold in to their clothing.
....and for that Chuck Munger is truly grateful. He cherishes his fond memories of grandmother to this day.
must.invest.pensions.in.government.bonds.no.hiding.from.ponzi
Hard to say what is real in the surreal Gold and Silver markets. I expected Gold and Silver to blow upwards last year with all the China, India, Russia, and Central bank purchases. Based on real inflation, continued withdrawals from the stock market, and ZIRP forever, I would have thought PMs would have rocketed by now. Perhaps we were just missing Japan. Maybe yes...maybe no. At some point things get real. Perhaps when the comet ISON rolls around next year. Time keeps ticking but people are just as superstitious today as they were in the time of cavemen. If there is a continued drought which exasperates food inflation and that comet really shines as expected then I believe the time for PMS will have finally arrived. Seems like end of 2013 is a juxtaposition like no other.
Comet (harbinger of evil) check
tax hike check
Drums of war check
gun control check
Drought check
food inflation check
President Obama check
State petition to succeed check
U.S. insolvency check
U.S. debt unchecked check
U.S., Japanese, Europe ponzi printing check
North Korea check
Israel unchecked check
middle east crises check
Global Banking crises check
Sovereign Debt crises check
Gov't purchases 1.4 billion rounds for domestic use check
Gov't increases role of TSA check
Gov't spies on citizens check
(2.9) the number of workers to retiree ratio in the U.S. check
Bric and Pan Asia PM hording check
Japan vs. China conflict check
We live in interesting times...check
Check Mate!
That's a lot of checks waiting to be cashed.
You lost me at "harbinger of evil", Gandalf.
Looks like the herd is starting to pick up speed.
As I understand it most pension funds are notbalowed to invest in Gold?
So not much of a point here.
There hasnt been inflation in Japan in the last 20 years. They set a 2% target and pension funds are now going to pile into Gold? unlikely at best.