By Daily Crux Editor Sean Goldsmith:
Investing in gold has slowly been making its way into the mainstream. First, some of the smarter money managers began buying gold bullion and gold stocks for clients. Then Bloomberg and Wall Street Journal ran stories on the precious metal as an inflation hedge and protection against an economic collapse. Now, your boring, run-of-the-mill insurance giant is buying gold...
Northwestern Mutual, the third-largest U.S. life insurer by 2008 sales, bought gold for the first time in the company's 152-year history..."Gold just seems to make sense; it's a store of value," said CEO Edward Zore. "In the Depression, gold did very, very well." The insurer bought around $400 million in gold, and Zore believes that position could quintuple if the economy continues to weaken. "The downside risk is limited, but the upside is large," Zore said. "We have stocks in our portfolio that lost 95%." Gold "is not going down to $90."
We believe gold will be a great investment for the long-term, because the dollar is doomed. But when a stodgy insurance company starts buying it, get ready for a short-term correction.
Read full article...
More on investing in gold:
If you don't own gold, read this now
Gold stocks haven't even begun to soar
Chinese investors gobbling up gold bullion
