The Bond King has been touting gold since 09/12 ($1800) and 01/13 ($1660) and right now ($1360). @PMICO Minutes ago, the Bond King just tweeted: Gross: OK, so I made a bad call at the Barronâs Roundtable. I would still buy gold here. World reflating. 2:15 PM - 15 Apr 13 In case you missed it, here's an excerpt from Barron's (from January, 2013): ...The real risk to the financial markets is the marginal proclivity of investors to put their money in real assets, or under the mattress. Thus, my first recommendation is GLD -- the SPDR Gold Trust exchange-traded fund. It has a fee, but it is an easy way for investors to buy a real asset. Lots of things go into pricing gold, but real interest rates [adjusted for inflation] and expected inflation are two dominant considerations. Gold probably won't move much from current levels unless real rates decline more or inflationary expectations rise from the current 2.5% to 3%, or higher. That's what gets gold off the dime. It is a decent hedge. It doesn't earn anything, but not much else earns anything either.
Gross has lost a grip on reality. The world is DEFLATING, NOT REFLATING. 1) US Fed running out of bullets Lower supply of money = less chance of inflation 2) China growth slowing Lower demand for all goods 3) US Employment situation still quite bad Lower demand for all goods Only hope for the gold bugs is to get Iran or North Korea to initiate a nuclear war.
1) Okay....Ha ha, hee hee, ho ho, two-shay! 2) Do you have a poster of him taped to the ceiling above your bed?
I surely hope you don't secretly jack off to a ceiling picture of Robert Prechter or Gary Shilling above your bed.