The investment potential in pension funds is massive. All they would have to do is devote a tiny fraction of those trillions of dollars to gold, and therefore, prices would soar.
New York, NY (PRWEB) April 02, 2013
Over $27 trillion are held in pension funds worldwide, and managers of those funds are starting to show more interest in gold. The increased demand that this interest would create could cause the gold price to rise exponentially. The idea has already caught on in Japan, where Prime Minister Shinzo Abe’s plans for higher inflation have pension fund managers investing small amounts of the country’s pension funds, worth $3.4 trillion, in gold.
Itsuo Toshima represented the World Gold Council office in Tokyo for 23 years and now works as an advisor to pension fund managers. He sees gold becoming a regular part of Japanese pension fund investments as the threat of inflation there worsens.
“Pension money invested in bullion is ‘peanuts’ at the moment,” he told Bloomberg News. “If 1% of their total assets shift to the metal, the gold market would explode.”
Pension fund managers in the U.S. are also starting to see the benefits of diversifying into gold and how it could affect the price of the yellow metal. Shayne McGuire, managing director and head of Global Research at the Texas Teacher Retirement System pension fund, likens the effect that pension funds could have on gold demand to “shoving an elephant into a mailbox.”
Arthur McGuire, Vice President of Gold Price, says, “The investment potential in pension funds is massive. All they would have to do is devote a tiny fraction of those trillions of dollars to gold, and therefore, prices would soar. It will be interesting to see how increasing pension fund interest affects the gold price.”
Gold Price (GoldPrice.net) is a leading precious metals advisor since 1992 with headquarters in New York, California, Texas, Utah, New Mexico and Puerto Rico. Gold Price is also a direct gold and silver dealer, specializing in purchasing, selling and trading physical gold and silver such as modern bullion bars/coins and certified rare coins. They offer investors a free award-winning gold starter’s kit by visiting http://www.GoldPrice.net or calling 1-800-767-1423.