Bill Gross (Pimco) and Rothchild Wealth Management look to Gold! ?

CriticalSilver · Feb 6, 2012

Chinese & Indian Gold Demand Rising as Zero Rates "Distort" Investment Markets, "May Kill Credit"
http://www.24hgold.com/mobile/iphon...ld.com/24hpmdata/articles/020220120775741.htm

"For now, gold may well remain volatile," says Dirk Wiedmann, head of investments at Rothschild Wealth Management, now running some 12 billion ($15.7bn) in client funds.

"[But] it is increasingly attractive as the only truly hard currency...[Our] large positions in gold seek to preserve and grow the real value of our clients' wealth."

"We can't put $100 trillion of credit in a system-wide mattress," says Bill Gross, founder and co-manager of the giant Pimco bond-funds group. "But [savers and creditors] can move in that direction by delevering and refusing to extend maturities and duration."

Because interest rates cannot go down from zero, bond prices have little room to rise, says Gross, and so "Zero-bound money may kill as opposed to create credit.

"It may, as well, induce inflationary distortions that give a rise to commodities and gold as store of value alternatives when there is little value left in paper."
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Bill Gross (Pimco) and Rothchild Wealth Management look to Gold! ?

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