Bill Gross says only gold and real assets will thrive in fiscal ‘ring of fire’ October 2, 2012, 10:58 AM
The latest round of quantitative easing made gold “even more attractive” and owning the metal should be considered as part of a diversified portfolio, analysts at bond giant Pacific Investment Management Co. said in a white paper posted Tuesday on company’s website.
Pimco founder and co-chief investment officer Bill Gross, in his separate monthly investment outlook also posted Tuesday, said only gold and real assets would thrive in a “ring of fire” of U.S. fiscal problems.
Gold GG GCZ2 -0.15% elicits black and white responses, the Pimco analysts said. Some investors “have a deep, almost religious conviction that gold is a useless, barbaric relic with no yield,” while others “love it” and see it as “the only asset that can offer protection from the coming financial catastrophe” always just around the corner, they said. LINK...******************************
Gold is entering the mainstream investment arena. This should crush any idea of gold being in a "bubble." Also, could this signal a new gold backing coming soon? BK
