I’m sure you’ve seen plenty of billionaire hedge fund managers on business TV or streaming live from Davos. They like to discuss their investments in Apple, Amazon, Treasury notes and other stocks and bonds. They love to “talk their book” in the hope that other investors will piggyback on their trades, run up the price and produce more profits for them.
Yet the only thing they almost never discuss in public is gold. Why have gold when stocks and bonds are so wonderful?
Still, I worked on Wall Street and in the hedge fund industry for decades. I also lived among the players in New York and Greenwich, Connecticut at the same time. I’ve met the top hedge fund gurus in private settings. Some are clients. Some are friends.
I’ve never met one who does not have a large hoard of physical gold stored safely in a nonbank vault. Of course, they won’t say so on TV because they don’t want to spook retail investors into dumping their stocks and bonds.
This article makes the same point. In the article, Goldman Sachs states plainly, “If an individual is trying to minimize the risks of sanctions or wealth taxes, then buying physical gold bars and storing them in a vault, where it is more difficult for governments to reach them, makes sense.”
I agree with that. What I don’t understand is why everyday citizens don’t do the same thing.
If gold bullion is the go-to asset for billionaires, why don’t small investors have at least a 10% allocation to gold and silver bullion just in case? Some do, but most don’t.
They’ll find out the hard way what individuals have learned over centuries and millennia. Gold preserves wealth; paper assets do not.
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