Pimco’s Bill Gross: Buy gold, not bonds
From Washington’s Blog:
Bill Gross — the world-s pre-eminent bond fund manager, nicknamed the “Bond King” — is the boss at Pimco, the world’s largest bond fund, with $1.8 trillion under management.
Gross told Bloomberg:
[There’s] a diminished or dying cult of both bonds and stocks from the standpoint of a belief that they can return 10%…
Gold can’t be reproduced. It could certainly be taken out of the ground in an increased rate, but there’s a limited amount of gold.
And there has been an unlimited amount of paper money over the past 20 to 30 years, and now — in this period of central bank expansion where it’s QE1 or QE2, or whether it’s the LTROs of the ECB or this potential new program… the central banks are at their leisure to basically print money.