News&Notes: The Winds of Change are Coming in Gold & Pension Problems

GATA -Bill H - We really did receive news of epoch proportions this past week regarding Gold and either no one realized it or everyone is so demoralized that it didn't even register. The Saudis bought $3.5 Billion of bullion, the Chinese are talking about shifting or diversifying part of their $2+ Trillion of reserves into Gold, and the Russians are talking about a "Gold convertible Ruble".

GLD Govt can't handle global run on gold coins - NY Post (72.65 )
NY Post reports there's a worldwide run on gold coins. Even as the price of the precious metal itself comes under pressure along with commodities like oil and copper, people around the world are demanding so many of the valuable coins that government mints are having difficulty filling orders. A spokesperson for the US Mint tells me that gold coins in this country, for the past month, "are being allocated because of an increased demand." And the price that the government charges coin dealers has recently been increased by as much as 10 percent for a 10-ounce coin... Even when gold coins are available, dealers report that customers are paying a bigger premium than they would have just a few months ago.

Paulson hedge fund buys into mortgage securities - FT
FT reports John Paulson, the hedge fund manager, has started to buy securities backed by residential mortgages. Mr Paulson's move marks the latest example of a famously bearish investor shifting gears to profit from depressed prices in the global credit markets. John Paulson has told his investors that he started buying troubled mortgage-backed securities at the end of last week, hoping to capitalize on price falls that followed the Treasury announcement. Mr Paulson, who has $36 bln under management, was scheduled to hold a dinner and wine-tasting at New York's Metropolitan Club on Monday night so that he could brief his investors on his plans.

Record losses hit pensions of big cos - WSJ
WSJ reports the nation's largest corporate pensions had record losses in October and won't meet federal-funding requirements without a massive infusion of cash, improved asset values or a change in law. In October, the 100 largest corporate pensions lost $120 billion, their largest one-month loss in assets since consulting co Milliman began tracking the numbers eight years ago. After adjusting for liability gains, the net result was a $59 billion loss in funded status. "There will definitely be companies in this group which, without relief or massive contributions, will have to freeze their plans, probably by Oct. 1 next year," said John Ehrhardt, principal and consulting actuary at Milliman in New York. He said the pension of the average company in the index was 100% funded in January, but is expected to fall to 76% by the end of this year. If the value of assets doesn't increase or the Pension Protection Act funding rules aren't changed, pensions may end up being frozen and benefits may be affected, he said.