The "Bond King" - Pimco boss Bill Gross - says:
[There's] a diminished or dying cult of both bonds and stocks from the standpoint of a belief that they can return 10% ....
Gold can't be reproduced. It could certainly be taken out of the ground in an increasing rate but there's a limiting amount of gold.
And there has been an unlimited amount of paper money over the past 20 to 30 years and now - in this period of central bank expansion where it's QE1 or QE2, or whether it's the LTROs of the ECB or this potential new program ... then central banks are at their leisure to basically print money.
Gold is a fixed commodity that has a considerable store of value that paper money has not....
When a central bank starts writing checks and printing money in the trillions of dollars, it's best to have something tangible that can't be reproduced, such as gold.
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Gold ... is a better investment than a bond or a stock, which probably will only return a 3 to 4 percent return over the next 5 to 10 years.
Gross doesn't believe that gold is a crowded trade at this point.
Has Mr. Gross been reading Zero Hedge?
Here's background for newbies to Zero Hedge [7].