WGC: Swiss Pensions Now Want the Gold
The quiet part is said out loud.
Bottom Line: Gold Gets Democratized
Find below our breakdown of report by the World Gold Council comparing gold to bonds in the euro zone with an eye on Swiss pension funds, amidst their recent struggles1.
There is a problem in Europe. And that problem stems from a dogmatic belief that bonds always and everywhere reduce risk. The data of the last year proves that otherwise. Smart banks like UBS have been telling their clients to be careful for over the last 18 months. Now, the data proves it. And the WGC lays the whole “bond as safe Haven“ fallacy bare for all to see in what amounts to a statistical mandate for pensions to buy gold and sell bonds.
We believe this type of analysis will become more important and work its way into the mindset of every global fund manager.
In short: data like this in combination with the Bond markets’ increasing portfolio risk translates to bigger allocations into gold globally. Euro-Keynesian fund managers who had been reticent to buy, will soon wake up and smell the Gold.
These types of reports by WGC, (frankly, not historically known for being actually bullish on gold ever) aren’t so much a recommendations as part of a bigger picture movement. And that movement is to slowly get the world’s fund managers, pension funds, and European nation states on a slow moving, but probably unstoppable monetary gold train.
We think this is all a big picture prep for gold joining the official stage in Western monetary affairs… if you know how to connect the dots.
Here is our breakdown and coverage of the second report to extol the virtues of Gold to investors and fund managers who do not hold gold. We reattached the first report telling fund managers to buy gold (posted in December 2023) at bottom.2