Billionaire investors who buy Gold and Why

Lord Jacob Rothschild, David Einhorn, Ray Dalio, Stanley Druckenmiller. These billionaires all believe and invest in gold, but for different reasons. Some buy gold for an inflation hedge, others for portfolio diversification. In this article we write about 4 billionaires and why they have chosen to invest in gold.

Lord Jacob Rothschild

He is an investment banker and a member of the prominent Rothschild banking family with a net worth of 5 billion USD. (1)

Jacob Rothschild said: „Central bankers are continuing the greatest experiment in monetary policy in the history of the World“ and that investors should focus on preserving wealth.
He has also said: „We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitive easing on a massive scale.“ – Jacon Rothschild in a letter to shareholders of Rothschild Investment Trust, 2016. (1)

He holds gold for two main reasons:

• Wealth Preservation
• Store of Value

David Einhorn

He is a founder of Greenlight Capital. Einhorn set up his fund, Greenlight Capital, in 1996. He has now built that portfolio up to a value in the region of $11 billion, and he is another prominent billionaire who has taken a shine to gold. According to AlternativeInvestmentCoach his fund continues to hold 10% of its value in gold bullion. (2)

The firm is well known for shorting Lehman prior to its collapse in 2008. (1)

„We believe the increasing adventurous monetary policy is bullish for gold“ – David Einhorn, Greenlight Capital.

He holds gold for:

• Inflation Hedge

Ray Dalio

He is the founder of the world´s largest hedge fund, Bridgewater Associates, with a net worth over $16.8 Billion.

„If you don’t own gold, you know neither history nor economics“ – Ray Dalio

He holds gold for:

• Store of Value
• Portfolio Diversification

Stanley Druckenmiller

He is a billionaire who has managed to generate an average annual return of 30% with his fund, without having a single losing year. His investment fund was active from 1986 to 2010.  According to various sources he still holds 20% of his entire portfolio in Gold.

„I have always made big concentrated investments. I don´t believe in diversification. I don´t believe that´s the way to make money“ – Stanly Druckenmiller

He holds gold for:

• Future Upside
• Fundamentals

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Read more: First time in history: Even Warren Buffet bets on Gold

• https://sprott.com/investment-strategies/physical-bullion-trusts/billionaires/
• http://alternativeinvestmentcoach.com/4-billionaires-buying-gold/