Gold Investment
A short time ago we wrote a piece about a major Wall Street icon making a gold investment in which we wrote, “DoubleLine Capital, a hedge fund with assets under management of $100 billion, is run by Jeffrey Gundlach and was named by Forbes as one of the ‘Most Powerful People’ in 2014. So when he mentioned gold, we took notice.
“While being interviewed by Reuters, Gundlach said that he still had exposure to gold and went on to predict that gold prices would continue to rise because ‘gold looks cheap compared to markets that have rallied a lot, including bitcoin and including Amazon.'”
This hedge fund manager, as well as the next, are making massive gold investments which are sure to help the price of gold in the long run. These Wall Street managers, however, and not making normal gold investments, but speculating in the metal to make billions of dollars. Nevertheless, it helps build a base in the price for anyone buying the metal in a Gold-IRA.
In the second quarter of this this year, the country’s largest hedge fund, Bridgewater, started making gold investments. Bridgewater’s CEO, Ray Dalio, bought over 575,000 shares of GLD, as well as 3.1 million shares of IAU.
Mr. Dalio clearly went on a buying spree of gold investments shortly thereafter, because his next SEC filings showed that gold was his hedge fund’s fourth largest position.
Around the time of this buying spree, Mr. Dalio was quoted as saying, “When it comes to assessing political matters (especially global geopolitics like the North Korea matter), we are very humble. We know that we don’t have a unique insight that we’d choose to bet on. We can also say that if the above things go badly, it would seem that gold (more than other safe haven assets like the dollar, yen and treasuries) would benefit, so if you don’t have 5-10% of your assets in gold as a hedge, we’d suggest you re-look at this. Don’t let traditional biases, rather than an excellent analysis, stand in the way of you doing this.”
President Trump’s tax plan has been in the news a great deal recently, as the Senate paved the way for a full vote in the near future. The Senate passed this most recent hurdle just last week. Speaking of Congress, it had the pleasure of speaking to the Chair of the Federal Reserve, Janet Yellen, who was asked about the tax reduction bill. Chair Yellen wouldn’t answer those questions directly, but she did discuss debt.
One of the things that is brought up about the tax plan, if one ignores dynamic scoring, is the possibility of it producing a $1.5-trillion debt hole in the future budget. The current debt of the US (without including pensions) is $20.6 trillion and rising.
When Chair Yellen was asked if she believed in the idea of dynamic scoring, which means that GDP growth would offset the potential debt, she instead said that it would be right to worry about debt.
“I would simply say that I am very worried about the sustainability of the U.S. debt trajectory. Our current debt-to-GDP ratio of about 75 percent is not frightening but it also not low. It’s the type of thing that should keep people up at night.”
Since the North Korean situation, and certainly government debt, are not going away soon, these situations will be keeping Janet Yellen and the Wall Streets titans above “awake at night.”
So what can you do about it? Since you’re not going to be buying millions in a massive gold positions like the hedge fund managers above, get started with a Gold-IRA today. Gold has been used for centuries to offset the risk of these problems, but today we can use a Gold-IRA to maximize your safety during these times.