This episode explores the investment potential of gold, particularly against the backdrop of its recent price surge exceeding $3,000 an ounce. The interview features Max Belmont, a portfolio manager with extensive experience in gold investments, who discusses First Eagle Investments' significant holdings (approximately $8.1 billion in gold bullion alone as of July 2024). More significantly, Belmont addresses criticisms of gold as a "barbarous relic" by highlighting its historically stable supply, chemical inertness, and its role as a hedge against inflation and currency devaluation. For instance, he compares and contrasts gold with Bitcoin, emphasizing gold's proven stability during market downturns, unlike Bitcoin's risk-on behavior. As the discussion pivoted to central bank activity, Belmont notes the substantial increase in gold purchases by central banks, particularly since the Russia-Ukraine conflict, driven by concerns about the weaponization of the dollar. Finally, the conversation touches upon the investment in gold miners, emphasizing First Eagle's focus on valuation, resilience, duration, and optionality when selecting mining companies. This nuanced perspective on gold's role in portfolio diversification offers valuable insights for investors seeking to navigate current market uncertainties.
