Bloomberg reported that Sam Zell, the founder of Equity Group Investments, bought gold (GLD) (IAU) for the first time. Zell said, “For the first time in my life, I bought gold because it is a good hedge.” He added, “Supply is shrinking and that is going to have a positive impact on the price.” The discovery of new gold has become very rare. Moreover, gold miners (GDX) (JNUG) are focusing on mergers and acquisitions to grow rather than growing organically, which should keep gold’s supply in check.
In addition to the above-mentioned investors, Ray Dalio, Bridgewater Associates’ founder, also recommends investors hold 5%–10% of their portfolio in gold.
View more information: https://marketrealist.com/2019/01/why-gundlach-and-einhorn-are-betting-on-gold/