Most Pension Fund Managers Shy Away from Gold – Guess Why
Tens of millions of Americans and their employers pour money into pension plans each month, counting on them to be there when needed at retirement—but a time bomb awaits. The bulk of US pension funds are dangerously underfunded, and the assets are often invested in securities that have bleak prospects for providing income that keeps up with a general decline in purchasing power.
Pension fund managers have a fiduciary duty to safeguard funds against foreseeable risk. With the practices of today’s Federal Reserve, there is no risk more foreseeable than inflation, but these fiduciaries are not fulfilling their duty to protect against this significant risk by investing in assets that are specifically suited to defend against the perpetual loss of the dollar’s purchasing power. Chief among these assets are physical gold and silver, the most reliable inflation hedges.
Cortez discusses death, taxes and dollar devaluation; gold’s ability to counter-balance other investments; and Texas as the blueprint on gold-invested pension funds.
“While most pension fund managers shy away from gold, they do so at their own risk and the risk of their pensioners. As a non-correlated asset to bonds, stocks, and other paper-based investments, precious metals are key to true diversification. It’s time for pension fund managers to break out of their Wall Street group think and include a meaningful allocation to physical gold and silver bullion for protection against inflation and financial turmoil.”