Silver Price & Gold Price Gets Huge Gains By Headlines Of US Treasuries All Getting Eradicated!

April 9, 2011 - PRLog -- The gold price and silver price should 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 planet's largest bond fund has become ultra bearish on the United States, dumping all of its U.S. government-related debt holdings. That move by Bill Gross's $236.9 billion PIMCO Total Return fund completed 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 as soon as the Federal Reserve halts its latest round of bond acquisitions in June. http://silver-dollar-values.com

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

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

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 Fed "disappears as the buyer of last resort."

Gross, just like many other investors, has brought up red flags over desire for Treasuries when the U.S. central bank ends its controversial quantitative easing program. This week, he asked the following in his widely read monthly article: Who will buy Treasuries when the Fed doesn't? The issue really is at what yield, and also what are the price repercussions if the adjustments are substantial. http://silver-dollar-values.com

Presently, bond prices have taken a huge beating on that possibility and as the U.S. economy recovery strengthens. 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 end of January.

Gross sold all of his U.S. government-related securities, including 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.

Which is down from when the portfolio held 12 percent government-related debt at the end of January. The last time PIMCO was this negative on U.S. government-related financial debt was in January 2009.
Gross's newest move reflects his defensive positions against higher rates and higher inflation.

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

Maybe now is the time for you also to consider your investment portfolio and buy gold and buy silver as a safe haven in these times of uncertainness in the political and financial areas. Silver dollar coins render a great investment that you can personally hold and keep safe.

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