Bill Gross Says Gold Will Thrive in 'Ring of Fire'

[pmbug]

...
Gross warned that the US debt problems have put the country in this “ring of fire” that will burn most investors. The only investors who will not get “burned”? He says the lucky few will be those that are protected by gold and other real assets, which are protected from a severe US dollar depreciation caused by the Federal Reserve's money printing.

In a white paper titled “GOLD – The Simple Facts” posted on PIMCO's website, PIMCO analysts Nicholas J. Johnson and Mihir P. Worah also said some interesting things. Here is an excerpt: “Our bottom line: Given current valuations and central bank policies, we see gold as a compelling inflation hedge and store of value that is potentially superior to fiat currencies.” They pointed out the positive supply/demand characteristics of gold as a big plus in their scenario. The PIMCO analysts went on to say, “We believe investors should consider allocating gold and other precious metals to a diversified investment portfolio.”
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http://www.minyanville.com/sectors/...oss-us-debt/10/10/2012/id/44864#ixzz29BmG5EAN

 

[DCFusor]

Well, great timing as usual pimpco. Gold down 1.5% this AM, and the year chart and my system say "sell all non core holdings" which I just did because the drop is obvious to the 50 day (again) and only 2-3% profit this summer wasn't acceptable to this trader. This is the same outfit that went short T bills just before the interest rates went to near zero...Not a great track record lately.

The stack of course, is the stack. With the vig on physical, I'm in the red, nominally and actually, except for the older stuff.

The tape is always the truth.
http://quotes.ino.com/chart/index.html?s=FOREX_XAUUSDO&t=&a=&w=&v=d12