Gold Investing "Will Beat Bonds" Says Bond King Bill Gross - 10 September 2012
CO-FOUNDER and managing director of the giant Pimco investment fund management group, Bill Gross now believes that Gold Investing "certainly" looks better than stocks or bonds for the next 5-10 years.
"I'm not a gold bug," said Gross, long dubbed the 'Bond King' for the success and growth of his California-based operation, to Bloomberg TV in an interview.
"I'm just suggesting that gold as a real asset will be advantaged if the US Federal Reserve or European Central Bank start to write checks in the trillions."
"Gold can't be reproduced. It can be taken out of the ground at an increasing rate, but there's only a limited amount of gold. There's been an unlimited amount of paper money over the last 20 to 30 years."
Denying the idea that the Gold Investing market is "too crowded" – because central banks are only now returning as buyers, having been big sellers for two decades – Bill Gross also refused to give Bloomberg anchors Alix Steel and Stephanie Ruhle a target price.
"I just think the Gold Price will be higher than it is today, and certainly a better investment than a bond or a stock which will probably return only 3-4% over the next 5-10 years."
Founded by Gross in 1971, Pimco now has $1.8 trillion in client assets, making it one of the very largest investment groups in the world.
Amongst those investments are more than $25 billion in commodity funds, according to Reuters – "far larger than public pension funds with more famous commodity programs like California Public Employees' Retirement System (CalPERS), or PGGM and ABP in the Netherlands."
Gross's analysis of Gold Investing echoes that of Ray Dalio, head of the $94 billion Bridgewater Associates hedge fund, who told Barron's magazine earlier this year that "Most people should have in the vicinity of 10% of their assets in gold.
"Not only because I think it will be a good investment longer term, but because I think [gold] is a very effective diversifier against the other 90%."
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