Gold Investing Posted by James Randolph on November 01, 2010
November 01, 2010 – Rumblings of a major revolution in gold investing are being heard and they have profound implications for portfolios that have been fortified with gold.
For decades managers of major funds allocated only a tiny portion of their holdings to gold investment believing that traditional assets, despite short term losses, had the best prospects for long term growth. While that may have been true in the past, the emergence of a global economy has dramatically changed the rules and caused retirement funds across the country to wither, along with the dreams of those who had put their faith in them.
The success of ever growing numbers of individual investors who have turned to gold investment to preserve their wealth has not gone unnoticed by fund managers. One year ago Shayne McGuire convinced the Texas Teacher Retirement Fund to establish a $330 million gold investment fund, and it has already grown to almost $500 thousand, helping the entire fund to return nearly 16%.
Big investors are being forced to accept that currency is no longer the bedrock of wealth. Crises will continue to arise in the global economy as new economies emerge, unsettling currencies and sparking inflation. Traditional investments, which depend on stable currency, are now fraught with uncertainty. To replace the rotting foundation progressive investors are certain to take increasingly stronger gold positions. And each tiny incremental increase in gold investing by major funds represents a huge increase in demand.
That is why McGuire predicts that gold will soar as high as $10,000 if 1% of traditional investments worldwide are switched to gold. More conservative John Paulson, a highly respected hedge-fund manager, believes that gold will climb to $4,000 over the next three years.
Regardless of such predictions, the trend towards gold investment is already underway. Investing in certified gold is looking very promising indeed.
Senior Staff Writer – Certified Gold Exchange