The major trend of recent years: the richest people in the world are buying gold. What makes billionaires buy the noble metal while everyone else is saving up dollars and euros?
Let’s take a look at the real-life examples:
Net worth: $5,7 billion.
Achievements: one of the wealthiest people in Egypt, the head of the country's largest telecommunications company.
According to Bloomberg, Sawiris spent half of his fortune on gold in 2018. The businessman is convinced that the world is on the verge of a crisis, and the noble metal will become a lifesaving asset at a time of the economic slowdown.
According to Sawiris, the impending crash of the stock market and the ever-growing international demand will facilitate the increase of gold prices – $1,800 per ounce.
The Egyptian billionaire not only buys gold, but also invests in its production, as he owns shares in three mining companies.
Net worth: $5 billion.
Achievements: an investment tycoon, a member of the prominent Rothschild banking dynasty.
Baron Jacob Rothschild has always been a strong opponent of the monetary policy of central banks. “They are conducting the greatest monetary experiment in history, the consequences of which are unpredictable,” the billionaire states. Therefore, it is important to take care of the safety of your wealth in a timely manner.
Recently, Rothschild reduced the amount of USD and GBP investments of his bank RIT Capital Partners and increased gold investments. An experienced banker relies on gold – the best tool for capital preservation.
Net worth: $18,6 billion.
Achievements: the founder of the world's largest hedge fund* Bridgewater Associates.
Dalio is convinced that the US economy is overheated, catalyzing a global crisis. The businessman advice to buy gold that serves as a protection against imminent threats.
In one of his interviews, the billionaire called gold the "all-weather asset", implying its reliability. According to Dalio, the currency is not even worth the paper on which it is printed, and only noble metals can ensure financial security.
Net worth: $4,8 billion.
Achievements: the founder and former president of the hedge fund Duquesne Capital Management, he is considered one of the top investors of all time.
The family-owned enterprise Duquesne Family Office invested in gold nearly $400 million. The billionaire believes that the situation in both the US economy and the foreign exchange market resembles the pre-crisis period of 2008. Back in 2016, at a conference in New York, Druckenmiller advised: “Exit the foreign exchange market, buy gold.”
Net worth: $1,3 billion.
Achievements: the founder of the hedge fund Greenlight Capital.
Einhorn worries that the actions of the Fed* will incite inflation in the near future. Einhorn considers gold as the best insurance against inflation. That’s why he keeps approximately 10% of all his stock funds in gold.
Net worth: $5,6 billion.
Achievements: a real estate investor and a co-owner of major media outlets.
Earlier this year, Sam Zell, who hadn’t previously bought gold, decided to add the asset to his portfolio. “It is a good investment. The supply of gold on the market decreases, which in turn has a positive effect on its exchange rate,” the billionaire told during the Bloomberg TV interview.
According to Zell, today the exploration of new gold mines is not funded properly. The companies mainly buy out the mines of competitors, hence the amounts of mined gold decrease. A shortage of gold will inevitably increase its price.
Not only billionaires, but many successful entrepreneurs understand the true value of gold for their financial security. People who deal with finances on a daily basis, keeping abreast of the world economy, know how to protect their capital.
The average billionaire keeps more than 10% of the total assets in currency savings. The rest is invested in business, funds, stocks, real estate and other assets. It helps accelerating wealth, yet does not protect it from market fluctuations. In this case, gold becomes a protection tool.
Financial crises harm not only high-profile entrepreneurs, but also ordinary people. The only difference is that it is harder for ordinary people to withstand the impact, given that they have very little money on the bank accounts and relatively inexpensive properties. It is unlikely for a billionaire to lose billions in a single year, meanwhile a person with average incomes can lose everything at once.
You can always learn from the experience of the rich and successful!
Gold is not a luxury item for the lucky few. Global InterGold gives everyone the opportunity to purchase this valuable asset, forming the basis for their Financial Security.
*A hedge fund is an investment fund that pools capital from investors, who entrust their money to professionals for maximizing gains and profits.
*The Fed (The Federal Reserve System) is an independent federal agency that functions as the Central Bank of the United States.