Yesterday, I said I was going to “share with you the exact investment that the worlds most famous (and richest) investors are doing right now.”
So here it is…
What do George Soros, Stanley Druckenmiller, John Paulson, Carl Icahn, Jim Rogers, Paul Singer, Bill Gross, and David Einhorn all have in common?
They are selling their shares in companies and buying gold.
These guys are the ‘who’s who’ of finance. They are massively wealthy and have been making consistent annual returns that would put even the best index funds to shame.
But, gold? Really?
Yes. Really.
Don’t worry, I’m not about to sell you gold. I’m just telling you the facts. Google it yourself. See who is buying gold and see what the best investors in the world are saying.
These guys are basically showing us exactly how to profit in the future… but hardly anyone is following their lead. Most people are looking to mainstream media for the next hot stock tip or the next company IPO to buy.
The mainstream media is not showing us what is really going on in the financial world – because they don’t know. It’s not some conspiracy or any BS like that, it’s just that the average person doesn’t have the guts to go against the herd and invest using the information that they research themselves.
These famous investors have their own research teams, access to all kinds of information and usually get a jump on any move in the markets – they are using the information they gather themselves and then executing on rational data.
You can look at their 13F fillings (which is where they have to publicly disclose what they are invested in) to see where they are putting their money.
It’s no secret. It’s just that most people are too afraid to go against the grain.
And that is why those investors are so wealthy.
Ok… so how do you buy gold, or it’s little brother silver?
This is something I’ve talked about many times.
However, I want to stress the importance of first owning physical gold or silver, instead of buying gold/silver stocks.
All these smart investors are showing us what they’re doing, and we can do the same exact thing.
Next week I’m going to share with you a big mistake I made, and I’ll show you exactly what went wrong so you don’t have to learn the hard way.
Hi Cody,
First of all, really like your writing and the don’t-follow-the-crowd approach!
On this post you mention that you can lookup holdings of the best investors via the SEC website – for obvious reasons this seemed of great interest to me. However, just went through SEC filings of Greenlight Capital and Soros Investments and I can’t seem to find their Gold positions. It’s these type of reports right: ‘Quarterly report filed by institutional managers, Holdings’. Am I looking in the right direction?
Ah… you actually looked!
First off, it’s difficult to find the exact statements because these guys have many, many different holding companies.
Second, Soros in particularly, is difficult to track because he is known for quickly switching positions (which is why a lot of people think of him as a snake… he did break the Bank of England!).
Soros had a huge amount of Barrick ($ABX) shares until very recently. $ABX has seen a rise of over 200% since November, which is probably when Soros started to make his position and then exited – hell, I think anyone would’ve walked with that gain.
All that said, 13F reports are only required within 45 days after each quarter. So a lot of these guys can enter and exit way before the public knows. Also, short positions and certain other trades do not have to be disclosed, so a lot can go unreported.
Finally, whatever games are going on underneath the sheets with these guys, all have publicly stated their concerns for the current economic environment and have expressed their bullishness in gold.
I know that doesn’t really answer your question, but I hope that somewhat helps.
Cody, it seems to me that Soros Fund Management has reduced GOLD positions, for example, SPDR Gold Trust, in the second quarter. What are some of the more cost-effective way to play in gold? The lack of coupons from physical assets can be painful in the long term. Also, why don’t more savers in countries affected by negative interest rates buy gold? Thanks.
Hey Jack… As I said in a previous comment, Soros is a bad example… but nonetheless, he still has large gold holdings. He has reduced some GOLD positions for profit taking.
More cost effective ways to play gold? Well… just buy it physically – that’s not necessarily cost effective, but it is the safest in terms of risk.
What do you mean painful in the long term? How so?
Most people don’t understand gold, so they don’t buy it. Only in hindsight (after massive inflation or currency collapse scenarios) do people understand the value of gold. That is why many countries populations, such as India or Germany, have traditionally held gold – because they remember the hard times!
Cody, what is your view on Harry Dent’s contrarian view regarding Gold at $750 by 2017 due to deflation, and US market crash.
Harry’s call for gold to fall that much is even looked at strangely by non-gold investors.
I have read some of his reasoning for why it will fall… I understand his logic, but I disagree.
Gold’s rise in price has been closely correlated to the amount of fiat money that has been printed. Investors traditionally go to gold when there is uncertainty in the market and/or lack of confidence in a currency.
That said, since the beginning of 2016, many gold stocks have skyrocketed and investors have made a lot of money (myself included).
I can’t say “Harry Dent is wrong,” but I can look at my stock positions and say, “I’ve made a lot of money because gold has gone up.”
We’re in very strange financial times, so no one can be sure of anything… But we can all be sure of gold’s rise in price this past year and the argument for it to keep going.
It’s also important to note that no one should have 100% of their wealth in gold, or in any one position. What if Harry is right? I’ll be sharing more ideas soon that have nothing to do with gold, just to hedge our bets.
Hi Cody,
Interesting website!
Do you think it is still interesting to buy gold and silver now?
With the FED who is potentially rising interests soon..
What impact will the US elections have on the price?
Thank you,
Lennart from Belgium
Yes, the long term thesis is still favorable to precious metals. If the fed raises rates, then it probably won’t be by much. If it is a lot, then a bunch of companies will default on their debt, triggering a market downturn, which again favors gold.
I will try to put something together in the coming weeks in regards to that.