The nation's airwaves and printed media are filled with, shall I say, shysty pitches to buy and sell gold. It reminds me of a certain mania that peaked in 2005 or so.Lots of people are gold maniacs.
Northwestern Mutual Life Insurance Co., the third-largest U.S. life insurer by 2008 sales, has bought gold for the first time the company’s 152-year history to hedge against further asset declines.That should really instill confidence.
"Gold just seems to make sense; it's a store of value," Chief Executive Officer Edward Zore said in an interview following his comments at a conference hosted by Standard & Poor's in Brooklyn. "In the Depression, gold did very, very well."
"The downside risk is limited, but the upside is large," Zore said. "We have stocks in our portfolio that lost 95 percent." Gold "is not going down to $90."
3 comments:
When Insurance companies start talking about "limited downside"...sell!
Like our paper currency the gold only has the value you assign to it. You cannot eat gold. Well you could, but I wouldn't recommend it. Trade your rapidly inflating paper currency for another piece of paper that says that your gold is sitting in a vault somewhere. Sound Thinking. I heard on an infomercial somewhere that now is the time to buy gold when its way above historical norms. It must be true, or at least it will allow some of the speculators to get out of their long positions on my back while the price rides back down to earth. Lets all go load up on some gspg.
OK, they have stocks that went down 95%. Like GM or Citi. (Why were they holding these?) But what did the overall portfolio of this professionally managed company do?
Dude, I don't even pay attention to what the implications are for my individual 401K allocations, and I'm down only about 20%. Surely, if your investment team is paying attention, your funds aren't down at all.
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