By Jon Marino
It's not just Olympians who will be going for the gold this month. Bill Gross is bullish on gold, and he's got plenty of company in 2016.
In a turbulent market, or worse still, a sputtering financial system, the precious metal becomes that much more precious in a market offering less and less in the way of yield. Gross voiced concerns about the financial system, economy and persistently low interest rates when he talked up gold in his August letter to investors.
"Not immediately, but at the margin, low/negative yielding credit is exchanged for figurative and sometimes literal gold or cash in a mattress," the Janus Capital Group fund manager said in a note Wednesday. "When it does, the system de-levers as cash at the core, or real assets like gold at the risk exterior, become the more desirable assets."
Gross joins a big and growing cadre of investors looking to mine yield in gold at a time when positive returns are becoming increasingly scarce.
Other recent investors in gold include Stanley Druckenmiller, George Soros and Jeffrey Gundlach.