Silver Prices & Gold Prices Get Huge Increases From Headlines US Treasuries All Getting Annihilated!

April 1, 2011 - PRLog -- Gold prices and silver prices should certainly benefit considerably from the following news of the dubious values of US Treasuries. Look for huge increases in the prices for silver and gold coming soon. This makes silver dollar values look like a fantastic investment now. Buy silver! Buy Gold!

The world's largest bond fund has become ultra bearish on the United States, dumping all of its U.S. government-associated debt holdings. This move by Bill Gross's $236.9 billion PIMCO Total Return fund finished last month comes in the wake of a vicious Treasury marketplace sell-off and just a few days after he asked who will purchase Treasuries once the Federal Reserve puts a stop to its latest round of bond purchases in June. Visit http://silver-dollar-values.com for more silver and gold tips.

Gross, who also helps oversee a $1.1 trillion investment portfolio as PIMCO's co-chief investment officer, has frequently warned against U.S. deficit paying out and its inflationary influence, which undermine the value of government debt as well as push up yields, as investors demand much more compensation for risk.

Over the last five months, worries over the burgeoning U.S. budget gap estimated at $1.645 trillion for 2011, political stalemate in Washington over how you can narrow it and inflationary worries have all contributed to a sharp sell-off in Treasuries. The standard 10-year note has observed its yield, which moves inversely to price, rise more than one percentage point since early October to 3.46 percent by Wednesday's close. Visit http://silver-dollar-values.com for more silver and gold tips.

Gross is expecting further carnage. Just last week, he informed Reuters Insider that a 4.0 percent yield for 10-year notes is a "rational expectation" if the Federal Reserve "disappears as the buyer of last resort."

Gross, just like many other investors, has raised red flags over desire for Treasuries when the U.S. central bank finishes its controversial quantitative easing program. This week, he posed the following in his extensively read monthly report: Who will buy Treasuries when the Fed doesn't? The question really is at what yield, and what are the price consequences if the adjustments are substantial.

Already, bond prices have taken a massive beating on that chance and as the U.S. economy recovery firms. The 10-year Treasury yield hit a 9-1/2 month high of 3.77 percent on February 9, rising 40 basis points in the brief period from the conclusion of January.

Gross sold all of his U.S. government-related securities, such as U.S. Treasuries and agency debt, from its main Total Return fund, as of the end of February 28, according to the firm's website on Wednesday. Visit http://silver-dollar-values.com for more silver and gold tips.

Which is down from when the portfolio held 12 percent federal government-related debt at the close of January. The previous time PIMCO was this unfavorable on U.S. government-related debt was in January 2009. Gross's newest move reflects his protective positions against higher rates as well as higher inflation.

Duration is a bond's sensitivity to interest rate fluctuations, and going short duration is an investment decision strategy when rates are expected to rise. The Total Return fund features an excellent reputation in timing the marketplace. It did better than 93 percent of its intermediate investment-grade competitors over the last three years, posting annualized returns of 8.67 percent.

Maybe now is the time for you also to think about your investment portfolio and buy gold and buy silver as a safe haven in these times of uncertainty in the political and financial areas. Silver dollar coins render a great investment that you can individually hold and keep secure. Visit http://silver-dollar-values.com for more silver and gold tips.

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