Mainstream Investors are About to Pile into Gold

07 Oct

Mainstream Investors are About to Pile into Gold

You know from our reports that some of the investment industry’s most conservative institutions are discovering gold.

See our commentary at the beginning of September New Faces in the Gold Spaces!  It described the Ohio Police & Fire Pension Fund decision to allocate five percent of its $15.65 billion portfolio to gold.  It also told of the University of Texas endowment fund which added a billion dollars of gold to its portfolio.

We spent more than a little digital ink of Warren Buffett’s surprising turn to gold (see HERE and HERE). 

We think this movement toward gold could soon turn into a stampede.  John Rubino agrees.  The title of this commentary Mainstream Investors About to Pile into Gold comes from an article he posted on his website

Rubino writes, “Money managers who don’t recommend gold to their clients are becoming the exception rather than the rule. This week saw a couple more big-name banks join the pro-gold parade.”

Rubino cites gold recommendations by leading banks UBS and Wells Fargo.  We keep a close eye on recommendations like that.  Some readers may even remember that we took special delight in Bank of America’s recent discovery that “the Fed can’t print gold like it can dollars!”


“Right now gold accounts for less than 1% of global investible capital. But as the above sentiment spreads throughout the mainstream investing community, typical portfolios for both individuals and institutions will contain increasing amounts of precious metals. To understand what a move from below 1% of total investable funds to, say, 5% over the next few years would mean, it’s helpful to compare the amount of capital in the world compared to the amount of gold.

“Estimates of how much gold exists above-ground are all over the place, but most cluster around an amount that yields a value of about $10 trillion at current prices.”

We recommend you see his arguments about the outsize impact of a shifting of global assets like stocks and bonds to gold can have, HERE.  

Rubino concludes his examination saying, “In a world where increasing political and financial instability makes traditional financial assets – including cash — seem unduly risky, and where gold is rising, both fear and greed might send considerably more than that into safe-haven assets.

Don’t wait for the stampede to develop.  Speak with a Republic Monetary Exchange gold and silver specialist today.