Japanese Pension Funds Seek Safety in Gold

Good news: some big Japanese pension funds are finally starting to see the benefits of diversifying their assets into gold.

Bad news: they still don't get it--they're choosing gold ETF's, i.e. paper gold to gain exposure into the gold market.  For the nth time, they should be buying physical gold, because when a financial catastrophe occurs (and that is one of the biggest reasons for having exposure to gold), having legal claim to gold is equivalent to an empty claim.

But hey, who am I to judge?  They manage trillions of yen.  They're the experts, right?  Then why have they entered the party 14 and 4 years later than me--with prices up as much as seven-fold in that time span?

http://online.wsj.com/article/SB10001424127887324407504578186710415464652.html?mod=googlenews_wsj