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Savvy investors who are paying attention have noticed many billionaires are getting fairly bearish on stocks and the economy in general, and are becoming more and more bullish on gold.
Some are predicting prices as high as $5,000 per ounce.
And it’s no secret the US, Chinese, and Russian governments have been rapidly increasing their gold reserves over the past few years.
Read on to discover why these “insiders” are stocking up on gold and how you can take advantage of the same opportunity if you move quickly.
Table of Contents
Is Gold a Good Investment in 2019?
The reason so many billionaires have significant portions of their wealth invested in gold in 2019 is because there are few investment vehicles that posses the same advantages as gold during these uncertain times.
10 Reasons to Invest in Gold
1. Protect Your Wealth
When the world is in crisis and you face increased risks from multiple fronts, you want an asset that first and foremost protects what you already have, and secondly provides for great upside potential. Gold has proven to be a safe haven for investors exposed to the risks of the stock market.
2. Gold Is Real Money
Physical gold has historically been one of the best forms of long-term wealth protection. You can touch it, hide it, and move it from one place to another. And it will outlast any currency we use now or in the future, so it is ideal for your heirs.
3. Hedge The Stock Market
Gold tends to rise as other asset classes fall, and there are all indications it will continue to do this more often than not in the future. This makes it an ideal hedge against the uncertainties of the stock market. The more of your investments are tied up in common stocks, the more gold you need to protect yourself and your family.
4. Gold Is Liquid
Gold can quickly be turned into cash — or even directly exchanged for goods and services — anywhere in the world.
5. No Counterparty Risk
When you own physical gold there is no concern about it going bankrupt. Your gold bullion will never default or need a bailout.
6. No Specialised Knowledge Needed
You can get started investing in gold without any previous experience or specialised knowledge.
7. Gold Is Easy & Cheap To Store
Storing your gold safely requires very little space, is low-cost, and low maintenance.
8. Protect From Government Intrusion
Storing some (or all) of your gold overseas gives you an extra safety net should the worst happen and your home country’s government starts confiscating personal assets, as the US government did in 1933 with Executive Order 6102.
9. Private & Confidential
Investing in gold can be one of the most private and confidential forms of wealth that provides anonymity few other assets can compete with.
10. Gold Is A Tangible Asset
Your physical gold eliminates many of the risks associated with owning paper or digital assets. It cannot be hacked or erased.
In recent years many high net-worth individuals have started sharing their gold allocation strategies. Everyone from Ray Dalio, Tony Robbins, and Kevin O’Leary agree that precious metals should form part of the foundation for your portfolio. Specific allocation strategy recommendations range from 5% up to 10% or more of your portfolio.
14 Billionaires Investing In Gold
Thomas Kaplan Gold Prediction: $3,000 – $5,000
Thomas Kaplan started his investing career with just $10,000 invested in silver, at a time when everyone else was predicting silver would go down.
He quickly turned that investment into hundreds of thousands of dollars and doubled down on investing in precious metals. He now has over $2 Billion invested in gold and believes gold will go to “$3,000 to $5,000 if not a lot higher depending on macro circumstances”.
Watch this interview to see why he says the Central Banks as well as the Russian, Chinese, and Indian Governments are buying so much gold:
With a net worth of over $18 billion, Carl Icahn is one of Wall Street’s most successful investors and has made a fortune by investing in gold mining companies. Speaking to CNBC regarding bearish bets by George Soros (selling stocks to buy gold), he told them those moves have merit because low interest rates have been artificially boosting the stock market.
The world’s richest man from 2010 to 2013, Carlos Slim made his fortune digging for gold in Mexico, and is currently ranked #5 in the world with a net worth estimated at over $63 billion.
“Anyone who is not investing now is missing a tremendous opportunity.”
Ray Dalio Has Over $600 Million In Gold
Ray Dalio’s recent LinkedIn post talks about his “Paradigm Shifts” investment principle and why now is a good time to invest in gold:
“Those that will most likely do best will be those that do well when the value of money is being depreciated and domestic and international conflicts are significant, such as gold … most investors are underweighted in such assets, meaning that if they just wanted to have a better balanced portfolio to reduce risk, they would have more of this sort of asset. For this reason, I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio.”
Ray Dalio’s investment firm Bridgewater has over $600 million invested in gold and gold shares.
John Paulson Holding More Than Half a Billion in Gold
Hedge fund founder John Paulson from Paulson & Co in New York is a long-time gold bull. You might recognise his name because he was made famous for betting against the housing market in 2007… and hauling in an estimated $3 – $4 Billion in a single year — believed to be the largest 1-year payday in Wall Street history.
“Historically, gold has always been a safe haven against inflation and a safe haven in times of political instability”
In 2012 he made a huge move into gold, putting 44% of his firm’s assets into gold. As of 2019, SEC filings show Paulson & Co have over half a billion dollars invested in gold.
M.G. George Muthoot
With a net worth of $1.1 billion, Mathai George Muthoot Jr. is one of India’s most successful entrepreneurs. As chairman of the Muthoot Group, he oversees assets of more then $4.5 billion and is India’s leading lender against gold.
Love him or hate him, there’s no denying George Soros knows how to make money, lots of money. As the head of Soros Fund Management he oversees more than $26 billion in assets, and has a personal net worth of approximately $8 billion.
“When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.”
Marc Stern – Over $140 Million in Gold
Marc Stern, CEO of private money management group Bessemer Trust, has invested over $140 million in gold and gold related companies. Bessemer is the largest multifamily office advisor with over 2,500 families entrusting their fortunes to them.
David Einhorn on Gold: “I hold gold, and I am never going to get rid of it”
David Einhorn, president and co-founder of hedge fund Greenlight Capital Inc, has long been one of the most closely followed hedge fund managers and is widely considered to be one of the most successful. Physical gold bullion is one of the firm’s largest holdings.
While president and co-portfolio manager at Waddell & Reed, managing up to $36 billion in assets, Michael Avery was cautious in the current climate and kept around 37% of their holdings in “very liquid assets” including gold.
“In 5,000 years of human history, gold has been the currency of choice, the store of value, when humans have called into question their govern- ments’ efforts to solve problems by running printing presses and injecting money into the economy.”
Sam Zell on Gold: “It’s a good hedge”
Billionaire Sam Zell, founder of the Real Estate Investment Trust (REIT), bought gold for the first time in his life in 2019 at age 77. In an interview with Bloomberg, the world’s 397th richest person told them:
“I bought gold because it is a good hedge … supply is shrinking, and that is going to have a positive impact on the price”
Russian billionaire Mikhail Prokhorov, whose claim to fame is that he lost the 2012 presidential election to Putin, has an estimated net worth of $10.7 billion. Much of that was gained through asset sales including a 38% stake in Polyus Gold where he raked in $3.6 billion. He currently owns 51% of the Brooklyn Nets and 100% of the Barlcays Center arena.
“We’re looking now at what the world financial system is going to do with all this money that was printed during the financial crisis, if there’s continued inflation, we’ll see a global trend for raw materials and gold is not an exception. I’m optimistic that the gold price will stay at the same price or higher.”
Jim Rogers says “The bull market is over”
Legendary investor Jim Rogers believes the longest bull market in US history is now over and he is not selling any of his gold.
“I still own all the gold I’ve ever owned … everybody should own some gold as an insurance policy”
Paul Tudor Jones – “One of the best trades is going to be gold”
In a recent 2019 interview with Bloomberg, Paul Tudor Jones says “if I had to pick my favourite for the next 12-24 months it would probably be gold”. He continues, “It has everything going for it in a world where rates are conceivably going down in the United States and going to zero, it has everything going for it.”
Tudor Jones is the founder of Tudor Investment Corporation and has a fortune of $4.7 billion which ranks him 120th on Forbes 400 richest people list.
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