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Betting on Gold: Stan Druckenmiller and Gold Investment

It’s the golden age of gold investment. The beauty of this time is that, while gold is widely known and studied, it is only now starting to be taken seriously as a powerful investment goal. Gold investment is popping up all over Wall Street hedge funds and being added to mutual funds throughout the world. Get ahead of the curve by adding gold investment to your long-term security and retirement portfolio!

Druckenmiller and Gold Investment

According to Business Insider, hedge fund manager Stanley Druckenmiller of Duquesne Capital (which he founded in 1981) is ‘all in’ for gold investments. Even after closing in 2010 with over $12 billion in assets, Duquesne still manages between $5 and $8 billion in assets. As its former chairman and president, what Druckenmiller predicts, we listen to. His fund has accumulated more than $2.88 million shares of SPDR Gold Trust this year. With a GLD value of $300.3 million at the end of the second quarter in 2015, Druckenmiller’s increase in his position of shares speaks to the value of gold investment.

“Bet the ranch on it”

Druckenmiller, when asked about his decision to invest strongly in GLD and create a significant portfolio of gold investment, said that “when he sees something that really excites him he will ‘bet the ranch on it’”. He believes in the kind of investment that isn’t made up of a lot of ‘diversification’, but large and bold investments in something that is going places. One of our favorite quotes from the genius money manager is as follows:

“The first thing I heard when I got in the business, not from my mentor, was bulls make money, bears make money, and pigs get slaughtered. I’m here to tell you I was a pig. And I strongly believe the only way to make long-term returns in our business that are superior is by being a pig. I think diversification and all the stuff they’re teaching at business school today is probably the most misguided concept everywhere. And if you look at all the great investors that are as different as Warren Buffett, Carl Icahn, Ken Langone, they tend to be very, very concentrated bets. They see something, they bet it, and they bet the ranch on it. And that’s kind of the way my philosophy evolved, which was if you see – only maybe one or two times a year do you see something that really, really excites you… The mistake I’d say 98% of money managers and individuals make is they feel like they got to be playing in a bunch of stuff. And if you really see it, put all your eggs in one basket and then watch the basket very carefully.” (Druckenmiller, Lost Tree Club, Jan. 2015)

Adding Gold Investment to Your Future

Investing blindly is dangerous. While Druckenmiller has invested 20% of his portfolio ($300 million)  in gold, which is twice as much as his next highest investment, copying his moves without the right team behind you might lead to mistakes. At Landmark Capital Gold, we create a plan, complete with gold investment strategy and long-term market goals personalized for your situation. We call it our ‘Entry Strategy’. Questions like “Are new coins or old coins better? Should I buy only U.S. minted coins? Are bars or coins better? How much investment should be made initially? Will there be interval additions to the portfolio over the years?” And more! Request expert advice today online or over the phone (toll free). 877.448.2646

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