not sure what the math is, but quick back of the envelope…total us pension assets, 22 trillion. 5% of 22 trillion is 1.1 trillion.
total value all gold in the world, 8 trillion.
that’s about 14% of all existing gold swallowed by us pension funds in a year. what about the rest of the world? is a possible move toward pension funds holding gold possible without causing the price to go through the roof?
it also strikes me as a sign of something radically wrong with the system if gold is an asset held by pension funds. it’s not supposed to grow, it’s supposed to retain value. if it’s got enough growth potential to be held by pension funds, the system is way out of whack.
