In a recent interview with CNBC’s “Fast Money,” traders Danny Moses, Vincent Daniel, and Porter Collins expressed their bullish stance on gold. This trio, known for their successful bet against the housing market prior to the 2008 crisis, emphasized the importance of including gold in investment portfolios. Collins highlighted the impact of central bank buying and the U.S. budget deficit as compelling reasons to invest in the precious metal. These factors, coupled with the depreciation of the dollar, make gold an attractive long-term investment option.
Rationale Behind the Investment
Collins pointed out that the value of the dollar diminishes over time, making gold a more lucrative investment compared to U.S. Treasurys. Despite the 15% increase in gold futures in 2024, the traders believe that there is still room for growth. Daniel and Collins emphasized their preference for gold, gold miners, silver, platinum group metals (PGMs), and Bitcoin, illustrating their confidence in the gradual appreciation of these assets.
Moses, founder of Moses Ventures, echoed the sentiment of his counterparts by disclosing a sizable investment in the Sprott Physical Gold Trust. This exchange-traded fund offers exposure to gold bars without the complexities of a direct investment. With the Sprott Physical Gold Trust experiencing a more than 16% increase year-to-date, Moses’ decision to go long on gold appears to be well-founded.
Despite their optimism towards gold, Daniel and Collins admit to remaining uncertain about the market’s direction. The traders acknowledged a slight deceleration in the economy but maintained their bullish stance on a diverse range of long positions. Their commitment to buying the dips in their chosen asset classes reflects a strategic approach to capitalizing on the ongoing dollar debasement thesis.
The investment strategy of “The Big Short” traders underscores their belief in gold as a resilient and profitable asset amidst economic uncertainties. By diversifying their portfolios with gold, silver, and other precious metals, these traders position themselves for long-term success in the ever-evolving financial landscape. As market conditions continue to fluctuate, their strategic approach to investing in gold serves as a testament to their foresight and confidence in the precious metal’s enduring value.