Gold is considered the undisputed king of uncorrelated assets and is a proven, safe haven investment that lets investors sleep at night.
Many investors turn to gold to hedge against the prospect of a bear market, defined as a prolonged downturn in which stock prices fall by at least 20% over two months or more.
Not surprisingly, some of the world’s most elite investors have shifted their fortunes into gold to take advantage of these traits.
Hedge fund bigwigs like Ray Dalio, Paul Tudor Jones, David Einhorn and John Paulson have made similar moves into the yellow metal. In early-2019, Sam Zell, the famous real estate mogul who invented the REIT, bought a substantial position in gold for the first time ever, saying he thought it was a “good hedge” and that “supply was shrinking.”
“Bond King” Jeffrey Gundlach, CEO of DoubleLine, endorsed gold in June: “I am certainly long gold,” said Gundlach. He believes that there is a 40-45% chance of a recession within six months, and a 65% chance in the next year.
Paul Tudor Jones championed gold on Jun 13, 2019: "The best trade is going to be gold. If I have to pick my favorite for the next 12-24 months it probably would be gold…it has everything going for it."
Ray Dalio increased Bridgewater's exposure to gold in Q1 2019. Dalio is the founder of the world’s largest hedge fund, Bridgewater Associates (~ $150 billion in assets). Dalio recommends that all investors should hold 5-10% gold as a hedge.
Sprott Physical Bullion Trusts
Raising the bar in precious metals investing
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