3 Billionaire Investors Who Have Been Investing Heavily In Gold

Why Position Yourself In Precious Metals Now?

Ben Mumme

Feb 06, 2024

Why Invest In Precious Metals?

As a millennial, I am often asked by my friends:

"Why do you invest in gold and silver?".

I invest in gold and silver as history proves they've consistently preserved wealth over centuries.

Throughout civilizations, from ancient Egypt to the Roman Empire, gold and silver have been valued for their reliability and intrinsic worth. Their enduring appeal has weathered wars, economic downturns, and political changes, demonstrating their resilience.

During uncertain times like the 2008 financial crisis, investors have relied on gold and silver as safe havens, confirming their status as reliable assets. This historical evidence confirms my confidence in including precious metals in my investment portfolio.

Unlike paper currency, precious metals have intrinsic value that isn't subject to manipulation by governments or financial institutions. Being tangible and limited in quantity, they can't be artificially inflated like fiat money. This characteristic gives precious metals a clear edge and brings numerous advantages to investors.

My thesis is not only backed by history but also by where some of the world’s smartest investors are putting their money.

In this newsletter, you'll discover why it's crucial to invest in precious metals now, along with insights into three billionaire investors who are heavily involved in gold.

Why Position Yourself In Gold and Silver Now?

Investing in gold now is smart due to fiscal policy uncertainties and soaring debt levels, potentially sparking inflation and boosting demand for safe-haven assets.

Gold acts as a hedge against economic downturns and currency devaluation, providing a strategic way to protect wealth and diversify portfolios.

As noted by Robert Kiyosaki:

“Commodities such as gold and silver have a world market that transcends national borders, politics, religions, and race. A person may not like someone else’s religion, but he’ll accept his gold.”

Image Credits: Sprott Money

Gold Is A Reliable Store of Value

Gold has a long-standing reputation as a reliable store of value throughout history. It's commonly used in jewelry, investments, and industries. Being a monetary metal, it serves as an alternative currency with minimal risk from counterparties.

In times of geopolitical turmoil like now, gold serves as a safe haven. Central banks maintain substantial gold reserves to stabilize their currency holdings.

Silver Is A Versatile Metal

Silver, on the other hand, is a versatile metal with unique physical properties that make it valuable in technology and as a form of currency. About half of the annual silver supply is used in various industries.

It's commonly found in jewelry, high-end utensils, as well as coins and bars for investment purposes. Silver is more affordable than gold, making it an attractive option for first-time buyers looking to enter the precious metals market.

Federal Debt: A Warning Sign for Economic Stability

The U.S. is grappling with a staggering debt surpassing $26 trillion in 2023, fueled by persistent budget deficits compounded by hefty pandemic spending. This alarming debt-to-GDP ratio, unseen since World War I, raises red flags about economic stability.

While monetary policy often steals the spotlight, fiscal policy significantly influences gold prices. Rising fiscal deficits and escalating federal debt erode economic confidence, driving up demand for safe-haven assets like precious metals.

This worrying trend primarily stems from inflation fears triggered by soaring debt levels. Historically, excessive public debt has spurred inflation through monetization. Moreover, concerns loom over the government's ability to handle debt payments.

This concern directly impact the overall economic outlook, potentially affecting various aspects of daily life, including purchasing power and job security.

Famously said by Harry Browne:

“When paper money systems begin to crack at the seams, the run to gold could be explosive.”

3 Billionaire Investors Who Have Been Investing Heavily In Gold

With political risk high, and outcomes being extremely uncertain; the world’s smartest investors are not leaving much to chance.

There have been many billionaires who’ve been stealthily accumulating gold over any other form of investment opportunity that their wealth gives them access to.

Image Credits: Bridgewater Associates

1. Ray Dalio

Ray Dalio buys gold as a store of wealth and diversification. When someone with a net worth of $18.7 billion praises the power of gold, you might want to pay attention. Ray Dalio, founder of the world’s biggest hedge fund, believes gold is attractive as a store of wealth and a means of portfolio diversification.

2. Lord Jacob Rothschild

Lord Jacob Rothschild buys gold to help preserve generational wealth. Lord Jacob famously declared that the Rothschild family was dumping the U.S. dollar and replacing it with other currencies, as well as gold. Changes in yields and monetary policy prompted that shift. The Rothschilds have been involved in the mining, refining, and trading of gold since the early 1800s.

3. Naguib Sawiris

Naguib Sawiris buys gold as a means of crisis protection. Naguib Sawiris, an Egyptian billionaire worth about $2.9 billion, put half of his net worth in gold in mid-2018 to protect himself from a potential stock market crash and to take advantage of gold’s potential upside.

Famously said by Thomas Kaplan: