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 some 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






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