Everything Gold Is New Again

One major beneficiary will be gold. I strongly believe that present financial conditions are about to transform the investment strategies of the world’s largest investment funds in a way that will cause gold to surge substantially higher. To understand why, consider present asset allocation at some of the world’s largest investment funds. Pension funds, like the one I work for, have a significant effect on the world’s markets, since they collectively manage $24 trillion. But gold plays a negligible role in their asset allocations. Teacher Retirement System of Texas, whose GBI Gold Fund I manage, probably holds a larger percentage of assets in gold than any other large ($10 billion and higher) pension fund in the world, but our holdings in the precious metal are modest in comparison with any major type of asset like stocks and bonds.