Gold over Bonds...
Gold now preferred over Bonds...Bill Gross.
Bill Gross of PIMCO world’s Largest Bond retailer said they now prefer Gold over Bonds...Citing numerous factors including US$ Fed will have to further ease QE3 ? this month, as the US Economy, as well as the World Economies are slowing down substantially , especially Unemployment in the US was down last 2 months , instead of being UP as expected....this was a major factor the Fed was waiting for....
In addition Gross pointed to the upcoming US$ “fiscal cliff” of $600 Billions US$, of tax cuts and revenue increases, which expire by the end of the year, if Congress does not renew...So far no evidence that whey will renew them..In addition to the “fiscal cliff” as well as the slowing US$ economy, is/will put tremendous pressure on the Fed to ease/act as soon as possible...
These actions along with the ECB recent announcement of the purchase program of Euro Bonds/Debts will add additional/substantial pressure on Bonds worldwide...Re flation is what he sees coming to the world , and thus the further printing of paper moneys, which has an unlimited capability/quantity , as compared to Gold, with a limited quantity...Many central Banks are actually buying and buying back Gold which should mean added pressure on the upside for Gold..In contrast The US$ index was Down over 1 cent on Friday closing near .8017, and looking to go lower in view of said upcoming crisis...
Little doubt now that Gold is going much higher....and so are all Gold stocks...including PDG...
IMCO...
Mellow