Pension funds allocate 5% into gold
Pension funds were never fond of gold. Only a mere US$16 billion (1,81% of $US900 billion) is invested by pension funds in gold and silver. In other words, 0,032% of all pension assets are invested in precious metals. But lately, we see s ome pension funds starting to allocate 5% into gold. We know that 21% of global assets are pension funds, so 5% of 21% is 1%. If gold allocation increases 1%, this would double the global allocation in gold and will more than double the gold price as demand doubles. This is because the formula of market capitalization is exponential. Formula: C = (A+B)^2 / A^2 Where: A = initial market cap B = net inflow of money C = price multiplication
