In a recent interview on CNBC’s “Fast Money,” traders Danny Moses, Vincent Daniel, and Porter Collins discussed their bullish stance on gold investments. With their renowned successful bet against the housing market prior to the 2008 crisis, these investors have now turned their attention to gold as a key long-term investment. Collins emphasized the importance of including gold in American portfolios, citing global central bank purchases and the U.S. budget deficit as driving forces behind the decision.
Collins highlighted the concept of dollar debasement, stating that holding onto cash means its value diminishes over time. In contrast, he believes that investing in gold will yield higher returns in the long term compared to U.S. Treasurys. While gold futures have seen a 15% increase in 2024, concerns arise as they have yet to reach their all-time high. Daniel echoed similar sentiments, pointing out the historical success of gold investments.
Despite their optimistic outlook on gold, Daniel and Collins acknowledged the challenges of navigating the current economic climate. In their annual note to shareholders, they admitted uncertainty about being bullish or bearish at the moment. However, they remain steadfast in their long positions on gold, gold miners, silver, platinum group metals (PGMs), and Bitcoin, considering these assets crucial to their dollar debasement thesis.
Founder of Moses Ventures, Danny Moses, shared his bullish stance on gold investments in a recent email to “Fast Money.” Moses disclosed a significant long position in the Sprott Physical Gold Trust, an exchange-traded fund backed by physical gold bars. The fund aims to provide investors with exposure to gold without the typical hassles associated with direct investments. As of the latest market close, the Sprott Physical Gold Trust has surged over 16% year-to-date, reflecting the growing interest in gold as a safe haven asset.
The Big Short traders’ shift towards gold investments underscores a strategic move to hedge against economic uncertainties and currency devaluation. Their bullish outlook on gold, combined with a diversified portfolio that includes other precious metals and cryptocurrencies, reflects their confidence in the long-term potential of these alternative assets. As the global economic landscape continues to evolve, gold investments remain a compelling option for investors seeking stability and growth opportunities in the ever-changing market conditions.