Teck Cominco Ltd. shares (TCK.B) took off Tuesday after the company provided more certainty for its US$14-billion takeover of Fording Canadian Coal Trust, a deal that had been in doubt recently due to shaky credit markets.
If just 5% of total market value of all publicly traded stocks shifted toward gold, $2.5 trillion would flow into the yellow metal. At today's prices, that would buy all the gold in the central banks three times over.
The global market of exchange-traded gold securities could expand to about $1.2 trillion if pension funds allocate only 2% of their assets to the sector. But has this new form of investment "cannibalized" the gold companies' shares.