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“Pension Money Invested In Bullion Is 'Peanuts' ... At The Moment”

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From GoldCore Gold Bullion

“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.


XAU/JPY, 1 Year – (Bloomberg)

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.

NEWS

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

COMMENTARY

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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Wed, 01/09/2013 - 08:54 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

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.

Wed, 01/09/2013 - 09:18 | Link to Comment CPL
CPL's picture

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.

Wed, 01/09/2013 - 09:24 | Link to Comment fonzannoon
fonzannoon's picture

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.

Wed, 01/09/2013 - 10:00 | Link to Comment Thomas
Thomas's picture

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.

Wed, 01/09/2013 - 10:44 | Link to Comment trav777
trav777's picture

yes, the plethora of ETFs are intended to absorb demand that would otherwise go toward real commodities and create trouble.

Wed, 01/09/2013 - 12:07 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

Not sure why you were downvoted for stating factual information.  There's a reason supply is so tight given suppressed prices.  

Wed, 01/09/2013 - 12:58 | Link to Comment CPL
CPL's picture

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.

Wed, 01/09/2013 - 12:08 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Fuck Lacker and the Chilton he rode in on.

Wed, 01/09/2013 - 18:52 | Link to Comment StychoKiller
StychoKiller's picture

Only one thing to say:  Bring. It. On!

Wed, 01/09/2013 - 08:57 | Link to Comment So Close
So Close's picture

He who buys first buys best.

Wed, 01/09/2013 - 10:04 | Link to Comment idea_hamster
idea_hamster's picture

The early bird may get the worm, but the second mouse gets the cheese.

Wed, 01/09/2013 - 10:55 | Link to Comment sessinpo
sessinpo's picture

Buy my ocean front property in Arizona. Presented by Maddof and backed by Corzine. What could go wrong?

Wed, 01/09/2013 - 08:59 | Link to Comment Landotfree
Landotfree's picture

The Europeans had large gold and silver holdings last time, not much good it did when the tanks started rolling.  

Wed, 01/09/2013 - 09:04 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

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.

Wed, 01/09/2013 - 09:07 | Link to Comment Landotfree
Landotfree's picture

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.

Wed, 01/09/2013 - 09:07 | Link to Comment SilverIsKing
SilverIsKing's picture

And what about the not-so-smart ones?

Wed, 01/09/2013 - 09:12 | Link to Comment Landotfree
Landotfree's picture

They got shot and gassed too, the liquidation process don't give a shit.  They just didn't get their teeth removed.

Wed, 01/09/2013 - 09:15 | Link to Comment fonzannoon
fonzannoon's picture

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?

Wed, 01/09/2013 - 09:19 | Link to Comment CPL
CPL's picture

Whores accept credit?

 

When did that start happening?

Wed, 01/09/2013 - 09:22 | Link to Comment fonzannoon
fonzannoon's picture

They accept lies too. At least they used to....

Wed, 01/09/2013 - 09:48 | Link to Comment HellFish
HellFish's picture

Oh they still trade freely in lies...

Wed, 01/09/2013 - 09:22 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

When the cavemen would run out of gold.

Wed, 01/09/2013 - 10:11 | Link to Comment Alpo for Granny
Alpo for Granny's picture

Well CPL, you can donate to political campaigns via credit card..so yeah.

Wed, 01/09/2013 - 09:08 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

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.

Wed, 01/09/2013 - 09:11 | Link to Comment Landotfree
Landotfree's picture

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.

Wed, 01/09/2013 - 09:13 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

I wasn't planning on running buddy.

Wed, 01/09/2013 - 09:19 | Link to Comment Landotfree
Landotfree's picture

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.  

Wed, 01/09/2013 - 09:30 | Link to Comment fonzannoon
fonzannoon's picture

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.

Wed, 01/09/2013 - 10:13 | Link to Comment Landotfree
Landotfree's picture

"classy about it"

There is nothing classy about getting liquidated.

Wed, 01/09/2013 - 09:13 | Link to Comment fonzannoon
fonzannoon's picture

Nowhere to run? Alcoa beat and Facefart is pushing $30. Rejoice.

Wed, 01/09/2013 - 10:20 | Link to Comment mick_richfield
mick_richfield's picture

  You have nowhere to run buddy

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?

Wed, 01/09/2013 - 11:00 | Link to Comment sessinpo
sessinpo's picture

  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.

Wed, 01/09/2013 - 18:56 | Link to Comment StychoKiller
StychoKiller's picture

Yet, the current Vietnamese Govt is trying to suppress the Gold trade...Have you been keeping up on current events?

Wed, 01/09/2013 - 09:14 | Link to Comment Shizzmoney
Shizzmoney's picture

You probably wouldn't know that because we don't teach history in our public schools anymore.

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.

Wed, 01/09/2013 - 12:24 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

"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.  

Wed, 01/09/2013 - 11:30 | Link to Comment Son of Loki
Son of Loki's picture

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.

 

Wed, 01/09/2013 - 09:15 | Link to Comment kliguy38
kliguy38's picture

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

Wed, 01/09/2013 - 10:30 | Link to Comment Silver Garbage Man
Silver Garbage Man's picture

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.

Wed, 01/09/2013 - 12:06 | Link to Comment secret_sam
secret_sam's picture

You're probably being laughed at because you've ALWAYS been saying "the tanks are coming."

Boy, wolf, etc.

Wed, 01/09/2013 - 09:10 | Link to Comment youngman
youngman's picture

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...

Wed, 01/09/2013 - 09:17 | Link to Comment Thisson
Thisson's picture

Nope, their mindset is to expropriate whatever amount is necessary to make up for the shortfall. 

Wed, 01/09/2013 - 09:12 | Link to Comment caimen garou
caimen garou's picture

I'll keep my gold and silver and take a bucket of peanuts to throw at the paper pushing monkeys.

Wed, 01/09/2013 - 09:16 | Link to Comment espirit
espirit's picture

Abe should wait until the JPY is actually worth something.

Come to think of it, better to buy bullion before the currency completely collapses.

Wed, 01/09/2013 - 09:23 | Link to Comment WhiteNight123129
WhiteNight123129's picture

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!

 

 

Wed, 01/09/2013 - 09:25 | Link to Comment becky quick and...
becky quick and her beautiful mouth's picture

i heard back in the day that uncivilized people sewed gold in to their clothing.

Wed, 01/09/2013 - 10:04 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

....and for that Chuck Munger is truly grateful. He cherishes his fond memories of grandmother to this day.

Wed, 01/09/2013 - 10:39 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

must.invest.pensions.in.government.bonds.no.hiding.from.ponzi

Wed, 01/09/2013 - 10:00 | Link to Comment Ignorance is bliss
Ignorance is bliss's picture

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

 

 

 

 

Wed, 01/09/2013 - 10:38 | Link to Comment tocointhephrase
tocointhephrase's picture

Check Mate!

Wed, 01/09/2013 - 12:03 | Link to Comment SilverRhino
SilverRhino's picture

That's a lot of checks waiting to be cashed.

Wed, 01/09/2013 - 12:15 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

You lost me at "harbinger of evil", Gandalf.

Wed, 01/09/2013 - 10:25 | Link to Comment Silver Garbage Man
Silver Garbage Man's picture

Looks like the herd is starting to pick up speed.

Wed, 01/09/2013 - 10:37 | Link to Comment Iam Yue2
Iam Yue2's picture

As I understand it most pension funds are notbalowed to invest in Gold?
So not much of a point here.

Wed, 01/09/2013 - 11:00 | Link to Comment drivenZ
drivenZ's picture

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. 

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