Gold News: Swiss Pick Gold Over Paper

In what shouldn’t be a big surprise to anyone, Switzerland’s pension fund has chosen physical gold over paper gold denominated in US Dollars. This gold news marks yet another step by big players away from the US Dollar; two weeks ago we reported Russian and Chinese choices to reduce their dollar holdings.

 Despite the recent strength in the dollar, many large players continue to reduce their dollar-based weighting, which makes sense from an asset allocation point of view.  In asset allocation, you spread your resources among several pots, both to increase the chances that you are in a something that turns out to be a big winner, as well as to avoid losing as much if one something turns out to be a big loser.  

Yet despite all this fleeing-from-the-almighty-dollar, the Dollar had a very strong month, indicating that while its standing in the eyes of the world may be reduced, Uncle Sam still swings a mighty strong currency.

Remember that when the chips fall, investors flee toward strength, so it’s unlikely the dollar will crash any time soon.  Today’s featured article talks about the Swiss pension fund’s choice to move into physical gold, and the geopolitical shift this choice is trying to get in front of.

 Related: Why European Banks Are in Big Trouble

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated with a business degree, then worked with Macy's. After Macy's he spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined a well-known financial planning firm as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where he worked first for a small manufacturing consulting company, then a major university. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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