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Jun 1, 2009

The Gata Dispatch: "Insurance giants bets on Gold fort first time in 152 years"

Submitted by cpowell on 06:17PM ET Monday, June 1, 2009. Section: Daily Dispatches But real gold or paper gold?* * *By Andrew FryeBloomberg NewsMonday, June 1, 2009http://www.bloomberg.com/apps/news?pid=email_en&sid=ajf0L9wTPq6YNEW YORK -- Northwestern Mutual Life Insurance Co., the third-largest U.S. life insurer by 2008 sales, has bought gold for the first time the company's 152-year history to hedge against further asset declines. "Gold just seems to make sense. It's a store of value," Chief Executive Officer Edward Zore said in an interview following his comments at a conference hosted by Standard & Poor's in Brooklyn. "In the Depression, gold did very, very well." Northwestern Mutual has accumulated about $400 million in gold, and Zore said the price could double or even rise fivefold if the economy continues to weaken. Gold gained 10 percent last month, the most since November. The commodity has more than tripled since 2000, rising for eight straight years. Gold futures for August delivery slipped $4.80 to $975.50 at 4:03 p.m. in New York. "The downside risk is limited but the upside is large," Zore said. "We have stocks in our portfolio that lost 95 percent." Gold "is not going down to $90." Policyholder-owned Northwestern Mutual, based in Milwaukee, ranks third by 2008 life insurance premiums according to data from the National Association of Insurance Commissioners. The data excludes annuities.
* * *Join GATA here: Vancouver Resource Investment ConferenceSunday-Monday, June 7-8, 2009New Vancouver Convention Centre1055 Canada Place, Vancouver, British Columbia:http://www.cambridgeconferences.com/ch_june2009.html
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From the Desk of Nick Nicolaas (FDNN) Alert #60

Post Mortem Examination #3
Martin Armstrong's Turnaround Date of April 20, 2009
Dear Friends:
In the recent issue of the Resource World “Investment Opportunities and News Magazine” the Editor in Chief, Ellsworth Dickson, interviewed me and I still stand by what I stated in that interview - - - which basically is that you should take the opportunity in these bear-market bull rallies to get out of the Financial Markets.
Click here for the Resource World Interview“Timing the Market No.2”
The Martin Armstrong Turnaround date of March 22, 2008 clearly indicated that the Financial Tsunami was cresting and it did last fall - - - but the second wave of this Tsunami is still to come.
The second shoe is still to drop in our view probably by the end of summer.
In the interim, the S&P could very well go to 1,000 or it may move to the downside in the near-term but - - - from our point of view - - - if it keeps on going up, then that is an opportunity to quietly lighten-up and sell the Financials as I am sure many institutions are doing exactly that as I write this.
We have been quietly buying into the hard-assets, gold, silver, uranium, base metals and oil & gas and we will deploy the extra the cash from selling the Financials as well as the cash we are still sitting on by the end of summer and probably be fully invested in the commodities by then and then - - - we quietly wait to take some profits by the time the 2010 Winter Olympics start.
The Scott Wright “Commodities Survey” summary at the end of Zeal Weekly Newsletter of Friday May 29, 2009 expresses our bias vis a vis the Hard- Assets (Real assets): “The bottom line is the secular commodities bull is fine and well. Even amidst the panic-selling carnage of last autumn, commodities still had incredible bull-to-date gains. And when investors realized the apocalyptic vision that the markets portrayed was not to be, commodities were quick to rebound from their oversold levels. From November's panic lows commodities and the stocks that produce them have had fantastic runs. And investors are slowly starting to realize that real assets are the way to go. This commodities bull still has a lot of life remaining. So make sure you have real assets as part of your investment and speculative portfolios.Scott WrightMay 29, 2009”
END You can read Scott's “Commodity Survey” here!
Yes friends, you've got to be in Hard-Assets (Real Assets) - - - to win It!!
As always - - Stay Tuned!!
Regards,
Nick L. Nicolaas

Forbes.com Alerts:"Morgan Stanley, Citi launch joint venture early"

Morgan Stanley and Citigroup Inc. said Monday they closed early on the launch of their joint venture that combines Morgan Stanley's wealth management unit with Citi's Smith Barney brokerage division. To read full coverage of this report , please click :
http://www.forbes.com/feeds/ap/2009/06/01/ap6487754.html?partner=alerts

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