Can you afford to Retire?
Investing icons Stanley Druckenmiller, John Paulson and Ray Dalio continue to wage big bets on gold, despite the precious metal heading for its longest slump in more than 30 years as investors sold from bullion-backed funds.
Gold has fallen roughly 45% from the highs it reached less than five years ago, the Motley Fool reports, but Druckenmiller is one of the top 10 holders of SPDR Gold Trust (GLD).
Druckenmiller, who was the chief strategist for George Soros, is putting a fairly large chunk of his $4 billion or so fortune into his gold bet through his personal investment vehicle, Duquesne Family Office. His roughly 2.9 million shares of SPDR Gold Trust are worth around $300 million.
For his part, Paulson and his hedge fund group Paulson & Co. continue to believe in gold.
According to regulatory filings, the 9.2 million or so shares of SPDR Gold Trust his company owns are worth around $900 million at recent prices.
“To be fair, he doesn't have as large a stake in gold right now as he did in 2010. What's interesting here is that in late August, Paulson called gold fairly valued. It's only kept falling since then,” Reuben Brewer explains.
“Moreover, he has noted that gold has a place in portfolios as insurance against the unexpected. With the Fed starting to raise interest rates, the risk of unintended consequences looks like it just started to heat up. Keep an eye on Paulson's gold bet...if he starts to up his stake, you'll want to take notice.”
Finally, Dalio, founder of Bridgewater Associates, has been quoted as saying, "If you don't own gold, you know neither history nor economics."
Dalio isn't getting his exposure to gold through the SPDR Gold Trust, he's investing directly in gold miners Newmont Mining (NEM), Barrick Gold (ABX), and Goldcorp (GG).
Gold’s image as a haven asset has taken a battering as investors sold from bullion-backed funds, Bloomberg reports.
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Read more: Motley Fool: These Billionaires Are Betting Big on Gold in 2016
Important: Can you afford to Retire?
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