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Gold is only 0.7% of Global Managed Assets

That is actually Gold and Gold equities. That is quite the bubble there……Not!

I also found this nugget from 2006, from John Hathaway of the Tocqueville Gold Fund:

“In the bleak days of 1935, the market cap of above-ground gold equaled 15 percent of U.S. financial assets. In 1980, when bonds were dubbed ‘certificates of confiscation’ and good-quality equities traded at six times earnings and 6 percent dividend yields, that same percentage was 29 percent. In today’s carefree world, that percentage is only 3 percent. The price of gold can double or triple in the absence of catastrophic outcomes simply as more investors attempt to position the exchange-traded fund.”

dec8goldglobalassets

What happens if everyone in the world doubles their gold exposure? Triple? Triple the exposure would still be only 2% of all global assets. And what about the newcomers? Simply put, this has the makings of an incredibly explosive situation over the next few years.

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Trackbacks/Pingbacks

  1. Precious Metals Expert David Morgan Gives Targets for Gold | Wall St. Cheat Sheet - 12/08/2009

    […] This is a guest post by Jordan Roy-Byrne CMT at The Daily Gold. […]

  2. A Stern Reality Check for Gold Naysayers | Wall St. Cheat Sheet - 02/09/2010

    […] First of all, only 0.7% of all global assets are in Gold and gold-related equities and exchange traded funds. What does a real Gold bubble look like? That figure was 15% in 1934 and 29% in 1980. While more and more people are buying Gold (that is what happens in a secular bull market, participation rises over time!), it is still extremely under-owned while corporate and government bonds are over-owned. The vast majority of the few that own precious metals in their portfolio have a weighting below 10%. While a lot of money poured into Gold in 2008 and 2009, even more money poured into Bond funds. That is the crowded trade. […]

  3. A Stern Reality Check for Gold Naysayers | Global Investors - 05/18/2010

    […] [4] TheDailyGold.com […]

  4. Why Gold (GLD) Stocks are Certain to Go Higher | Wall St. Cheat Sheet - 08/03/2010

    […] I’ve used this one before but it is so illuminating that it needs to be seen again and again. Anyone who thinks gold is in a bubble needs to see this chart. Yes, despite a 10-year bull market, gold stocks barely register. And just to confirm this data, there was a chart from Barrick Gold last year that showed precious metals as only 0.7% of all global managed assets. […]

  5. Why Gold Stocks are Certain to Go Higher - Gold Speculator - 08/03/2010

    […] bull market, gold stocks barely register. And just to confirm this data, there was a chart from Barrick Gold last year that showed precious metals as only 0.7% of all global managed assets. Aside from looking at gold stocks by theirselves, they should be compared to the S&P […]

  6. Why Gold Stocks Are Certain to Go Higher | Gold Blog - 08/03/2010

    […] I’ve used this one before but it is so illuminating that it needs to be seen again and again. Anyone who thinks gold is in a bubble needs to see this chart. Yes, despite a 10-year bull market, gold stocks barely register. And just to confirm this data, there was a chart from Barrick Gold last year that showed precious metals as only 0.7% of all global managed assets. […]

  7. Welcome to GoldInstitute.net » Posts » Don’t Get Shaken Off the Gold Bull - 10/02/2010

    […] market. Even after a 10-year bull market, less than 1% of global managed assets are in this sector. Barrick Gold came up with 0.7%. As of the end of 2009, $400 Billion (of $55 Trillion in global managed assets) was invested in Gold […]

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