3 Billionaires Investing Huge Money in Gold
The world’s wealthiest people are always looking to increase their portfolio. Many of them have done so by placing big bets on Gold investments. The most intelligent and wealthiest investors throughout the world keep gold in their portfolio since this asset possesses serious value. This statement has never been truer amongst everyday investors that usually scoff at the potential upside of gold investments.
Nonetheless, a few intelligent billionaires began investing heavily in gold over the last few years and decades. They’ve bought incredibly large sums of gold, which makes the entirety of their investment bigger than the economies of certain countries around the globe.
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What Will I Learn?
Billionaires with Large Gold Investment Portfolios
Not that long ago, a few well-respected investors started pumping millions and millions of dollars into gold by adding it to their portfolios. Even more impressive, Egyptian business mogul Naguib Sawiris has taken it a step further by investing billions of dollars into gold, which is incredibly impressive.
A brief rundown of top billionaire investors and their gold investments include:
- Ray Dalio – $400 million +
- Warren Buffett – $564 million
- Naguib Sawiris– $4.2 billion
Whether you know it or not, there are other billionaires that also have rather large gold investments because they want to preserve and protect their wealth. They realized that this asset is incredibly valuable, and remaining unprotected in difficult economies is never a great idea.
Why Are Billionaires Pumping Big Sums of Money into Gold Investments?
Many people believe that billionaires like to buy gold just to add an additional asset class to their portfolio. But the truth is that today’s intelligent billionaire investors recognize that there are numerous reasons to invest in gold.
Some of their favorite reasons to buy gold include:
- There is a major increase in market volatility. The economy is tough and wealthy investors recognize the value of stable markets, which is exactly what you get when you invest in gold.
- The historical value of gold is consistent throughout the years. It has been considered a store of value for thousands of years and counting.
- Buying gold provides the perfect opportunity to hedge your bets against deflation and inflation.
- Adding gold to your portfolio means adding true diversity and protection. Billionaires love having the added protection of gold keeping their portfolio safe.
- Geopolitical and macroeconomic uncertainty definitely exist, but gold provides excellent protection against them.
- Gold is highly liquid and there is a large market ready and waiting to purchase your assets at a moment’s notice.
Billionaire investors realize the importance of adding inflation protection and diversity to their bottom line. To better understand the benefits of gold investing and the billionaires thought process, please continue below.
Volatile Markets
Varying markets have never been more volatile than they are today. This makes it tough to predict the direction that any market could take. Billionaires understand that stability is the key to investing success, not volatility. They want predictable returns, which gold and precious metals investments provide.
Going through a market crash is particularly damaging to investors’ portfolios if they aren’t prepared. Billionaires understand this and realize that they can lose significant wealth during a market crash. That’s why gold investing delivers the utmost in portfolio protection.
Investors in the middle class should also capitalize on the strategy. If a market is volatile and ready to crash, like it is at the moment, it’s best to begin investing in gold because it’s diversified, predictable, and safe.
Historical Value
No one should seem blindsided to learn that the commodity gold has maintained and grown its value throughout many thousands of years. Gold has been considered a form of legal tender and wealth preservation for many millennia.
Even with so much history, gold is still considered an important store of value in 2022 and beyond. Even better, the value of gold continues to grow to new heights with every passing decade.
Deflation/Inflation Hedge
Throughout the years, gold has been considered a great hedge against inflation and deflation. Particularly, it’s a great hedge against inflation because when costs go up, gold also increases in value.
It also provides deflation protection when prices begin to decrease. During the Great Depression when prices dropped, gold’s relative purchasing power swelled at the same time, which means it was much safer than keeping your money in cash.
Diversified Portfolio
More important than anything else, gold’s ability to create portfolio diversity is a huge benefit. When compared to stocks, the gold asset isn’t necessarily correlated, which makes it a truly diverse investment. It has a negative correlation to stocks and different financial markets, in fact.
The history of the value of gold teaches us:
- In the 1970s when the stock market struggled, the value of gold increased exponentially
- In the 1980s and 1990s when stock prices were soaring, the value of gold struggled during this period
- In 2008 when the stock market crashed, investors pulled their money out of the market and began buying gold, which was amortized move because it increased in value by a wide margin
By adding this additional diversity to your portfolio as an investor along with stocks and bonds, your portfolio remains protected while limiting overall market and volatility risk.
Uncertain Geopolitical Times
Gold is called a crisis commodity. Why? Investors gravitate toward it during times of geopolitical strife. It’s a safe harbor when worldwide tensions are at an all-time high.
Outstanding Liquidity
There is a huge gold market that isn’t slowing down anytime soon. Any investor – including billionaire investors – can sell off their gold assets quickly in this highly liquid market. The excellent liquidity makes gold an even more attractive investment.
Bottom Line
Warren Buffett, Naguib Sawiris, and Ray Dalio really know what they were doing when they started investing in gold. This exciting asset class provides portfolio protection against a weak US dollar, market volatility, geopolitical uncertainty, and the next financial crisis.
Have you begun investing in gold yet? It’s time to take the next step and add this incredible investment to your portfolio, just like your favorite billionaires.
Perhaps the best way to start is to add gold to your IRA or 401(k) plan. Here is a list of companies that can help you get started.
About Kimberly King
Hi, I'm Kimberly, and after years of struggles, I've achieved my desired digital nomad badge. It has never been more important than now for Americans to know the LEGAL tax havens and offshore businesses since we live in a global economy. Many people miss out on great opportunities because they think locally or nationally. This is why I've joined this elite team to share with you that it's not just a dream but how to live exactly the perfect retirement you've always wished for.