Big Short traders Danny Moses, Vincent Daniel, and Porter Collins have shifted their focus to gold as one of their top long bets. Collins believes that Americans do not have enough gold in their portfolios and pointed to massive central bank buying worldwide and the U.S. budget deficit as reasons to invest in gold. He emphasized the value of gold in comparison to U.S. Treasuries, predicting that gold will outperform in the long run. Gold futures have seen a 15% increase in 2024 but are below their all-time high, presenting a potential buying opportunity for investors.
Collins and Daniel’s firm, Seawolf Capital, highlighted gold in their annual note to shareholders as a key investment. They expressed uncertainty about the direction of the market but reaffirmed their bullish stance on gold, gold miners, silver, platinum group metals, and Bitcoin. Their investment strategy is based on a thesis of dollar debasement, which has shown promising returns over the past four years despite occasional setbacks. Moses Ventures founder Danny Moses also expressed bullishness on gold, revealing a large long position in the Sprott Physical Gold Trust, an ETF that holds gold bars for investors seeking exposure to the precious metal.
The traders’ confidence in gold stems from a combination of macroeconomic factors and historical performance. With central banks around the world continuing to buy gold and the U.S. budget deficit growing, the outlook for gold remains positive in their eyes. While economic indicators suggest a slight deceleration, the investors remain committed to their long positions in gold and related assets. The ongoing dollar debasement theme provides a compelling rationale for holding gold as a hedge against currency devaluation, driving their investment decisions.
Despite fluctuations in the market and uncertainty about economic conditions, the traders maintain their conviction in the long-term potential of gold as an investment. They view gold as a safe haven asset that can protect against currency devaluation and provide a hedge against inflation. By diversifying their portfolios with exposure to gold, gold miners, and other precious metals, they aim to capitalize on the potential for continued price appreciation in these assets. Their strategy reflects a combination of fundamental analysis, macroeconomic trends, and historical performance data to guide their investment decisions.
In conclusion, the Big Short traders are optimistic about the outlook for gold and remain committed to their long positions in the precious metal. Despite market volatility and economic uncertainties, they see gold as a valuable asset that can serve as a hedge against inflation and currency devaluation. By emphasizing gold, gold miners, and other related assets in their portfolios, they aim to capitalize on the potential for positive returns in the long run. Their investment thesis is grounded in a belief in the enduring value of gold as a safe haven asset and a store of wealth, making it a cornerstone of their investment strategy.
