Pension funds use gold as bond hedge weakens: allocation signals for mine planners - Geomechanics.io
Pension funds use gold as bond hedge weakens: allocation signals for mine planners - Geomechanics.io
Source: Geomechanics.io
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DW NOTE
Pension funds are rotating into gold as bond duration risk compounds. The 10-year Treasury now yields 5.24%, up 9.39% in a month — every basis point rise destroys principal for holders who bought at lower yields. Gold has dropped 21.6% from its January peak, but it doesn't carry duration risk and it doesn't promise to pay you back in currency that central banks are actively debasing. For mine planners: institutional allocators aren't chasing the rally anymore, they're buying the insurance policy they should have bought three years ago.