Thursday, December 1, 2011

Billionaires Talk about Gold

Bloomberg Markets magazine in its January issue asked 10 billionaires 14 questions covering their views on the global economy, where they see opportunities and who gave them the best advice.

Russian metals mogul Mikhail Prokhorov, when asked, "What’s the safest investment: a bar of gold, a pile of U.S. Treasuries or a top-tier Picasso?", replied:
As a large chunk of my wealth is in Polyus Gold, a bar of gold, of course!
As for fixed income investments, he said:
I see little value in 2 percent on U.S. Treasuries. Among developed markets, Canada, Norway or Finland have better debt levels and are less inclined to inflate away debt problems. A combination of Russian corporate bonds, some Brazilian or Turkish local-currency debt, with a sprinkling of less obvious African options would be an interesting combination.
Among other billionaires Bloomberg surveyed, John Paul DeJoria of John Paul Mitchell Salons appears to also be somewhat of a hard money man. He said he would place a million cash this way:
Twenty-five percent in gold, 25 percent in silver, 25 percent in NYSE blue-chip stocks that pay a dividend and 25 percent between Asian and European blue chips that pay a dividend.

Billionaire attorney Joe Jamail, who says he runs a "sue shop",  keeps most of his billion in bonds (tax-free municipal bonds, guaranteed by a public school fund), but said this about gold:
I own some gold. I have a bunch of gold bars, and we give them as Christmas presents to the grandchildren -- an ounce for each. They don’t get to keep it. The parents put it away for them.


  1. Someone should talk to those billionaires gates and Buffett are targeting and advise theyd make more of a difference if they stored their contributions in gold until the devaluation is over and then donated the gold they set aside...well, that's what I'd do but ain't no billionaire :)

  2. The only one I might be inclined to take seriously would be Mikhail Prokhorov. I would never ask a lawyer for financial advice-unless of course they didn't make their wealth in the legal biz. Now if I was going to shake down a large corp for millions, I would definitely be interested in hearing what Jamail has to say.