Traders Danny Moses, Vincent Daniel, and Porter Collins are well-known for their successful bet against the housing market ahead of the 2008 crisis. Now, they are focusing on gold as a key long bet in their investment portfolio. Collins highlighted the massive central bank buying around the world and the U.S. budget deficit as reasons to invest in gold, stating that the value of the dollar is diminishing over time. Despite gold futures being up about 15% in 2024, they are still off their all-time high reached in July. Daniel and Collins’ firm have emphasized gold in their annual note to shareholders, stating that they are “neither bearish nor bullish” at the moment, but are very net long on an assortment of long ideas including gold, gold miners, silver, platinum group metals, and Bitcoin.
Moses, founder of Moses Ventures, also expressed his bullish sentiment on gold, revealing that he has a “large long” in the Sprott Physical Gold Trust, an exchange-traded fund specializing in holding gold bars. The Sprott Physical Gold Trust is designed to provide investors with exposure to gold without the typical inconveniences of direct investment. As of the latest closing, the trust is up more than 16% year-to-date. Moses, like his counterparts, sees the potential for gold to outperform U.S. Treasurys in the coming years, reinforcing their overall investment strategy centered around gold as a key asset.
The trio of traders remains optimistic about the long-term potential of gold as an investment, especially given the current global economic conditions. They believe that the continued dollar debasement and economic uncertainties will make gold a lucrative investment in the years to come. Despite some fluctuations and challenges in the market, they have maintained their long positions on gold, gold miners, and other precious metals like silver and platinum group metals. Their conviction in the value of gold as a safe-haven asset remains strong, driving their investment decisions and portfolio allocations accordingly.
Collins highlighted the weakening value of the dollar as a key factor driving their investment thesis on gold. He pointed to the ongoing central bank actions and increasing U.S. budget deficit as indicators of the dollar’s diminishing purchasing power over time. This macroeconomic backdrop has reinforced their belief in the long-term potential of gold as a superior investment option compared to traditional assets like U.S. Treasurys. The trio’s investment strategy focuses on a mix of idiosyncratic long ideas, including gold and other precious metals, as well as Bitcoin, as part of their broader portfolio diversification.
Despite the uncertainties and volatility in the market, the traders remain steadfast in their bullish outlook on gold and other precious metals. They see gold as a reliable hedge against economic risks and currency devaluation, making it an attractive long-term investment option for their portfolio. The strong performance of gold futures in 2024 and the ongoing macroeconomic trends have reinforced their conviction in the metal’s potential to deliver substantial returns in the future. Their continued long positions on gold, gold miners, and other precious metals reflect their confidence in the asset class and their commitment to maximizing returns for their investors.
Overall, the traders’ focus on gold as a key long bet in their investment portfolio underscores their confidence in the metal’s ability to outperform traditional assets in the current economic environment. With a combination of macroeconomic factors, central bank actions, and currency devaluation driving their investment thesis, they have strategically allocated their portfolio towards gold and other precious metals. The trio’s bullish outlook on gold, silver, platinum group metals, and Bitcoin reflects their long-term investment strategy aimed at capitalizing on the potential growth opportunities in the precious metals market. Their successful track record and expertise in navigating volatile markets further bolster their credibility and reinforce their investment decisions in the face of evolving market conditions.
