Welcome to Capital Account. Gold hit an 11 month high today, supposedly bolstered by signs that the ECB will keep borrowing costs low and the notion that the central bank stands ready to buy bonds in the secondary market. As long as central banks continue to print and maintain negative real interest rates, should investors consider owning gold? A recent PIMCO report stated the following:
“We believe investors should consider allocating gold and other precious metals to a diversified investment portfolio“. Could this mean investing in gold will become mainstream? We speak to GoldCore’s Mark O’Byrne about the impact of PIMCO’s report. We discuss both the supply side, as well as the demand side of the gold bull run. Are people using gold to hedge, not against moderate inflation, but against the potential for dislocating deflation or runaway inflation and hyperinflation?
Also last month a gold dealer in Manhattan discovered a certified gold bar was in fact made up of more than 75 percent Tungsten. Does fake gold really represent a tail risk for buying physical gold or is this a one-off thing? We discuss the role of gold and the potential for fraud.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
It’s a damned good thing magnesium isn’t close to gold’s atomic weight. That could possibly burn an awfully nasty hole in your pocket!
How’s about PIMCO dropping into the equation the mountain of derivatives (1.4 quadrillion at last honest accounting) that will have to be priced in eventually? $2500.00. ………….. Phtttt. T’ain’t nothing.
Bet those fake bars eventually trace back to a US vault…
The government has forged some 1.5 million 400 oz tungsten bars, half of which sits in Fort Knox, probably replacing the real gold which was sold, leased; hypothecated and re-hypothecated a 100 times over and the other half has been sold into the unsuspecting market worth a cool Trillion Dollars. Some of them turned up in HK some months ago, but was hushed up.
These 10 oz fake bars have all the hallmark of the same culprits trying to dissuade the public from owning gold by scaring them off with their fake tungsten bars.
Nice try JPM/ESF/Gov – you’re losing the battle.
That’s why you should not buy a gold piece that weighs more than 1 troy ounce. To reduce the chances of a counterfeit gold piece, you should always buy gold that weighs 1 troy ounce or less. Silver doesn’t have a counterfeit problem and even if it does, it is easier to spot it.