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Dear Friends,
Continuing with my previous discussion on GOLD. Here is a good example of Gold "crossing over" and becoming a mainstream investment, taken from a recent article on Bloomberg.com:
Northwestern Mutual Life Insurance Co., the third-largest U.S. life insurer by 2008 sales, has bought gold for the first time [in] 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...
The insurance company has been in business for 152 years and this investment is peculiar, as Gold doesn’t give any cash flows to investors. Anyone who understands the actuarial work will know the importance of cash flows to an insurance firm. I am not surprised by the investment of this insurance firm. There is an interesting article on GOLD in the recent issue of Forbes India.
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