Thursday, January 24, 2013

Who Are the Whales that are Buying Gold?

Ray Dalio, the billionaire money manager, who has $130 billion under management, appeared on CNBC this morning from the World Economic Forum in Davos, Switzerland.

His thinking about the markets is pretty much in line with the way I have been advising subscribers in the EPJ Daily Alert that I expect things to unfold. He expects money to move out of bonds and into equities, gold and other commodities. But what really caught my ear was his indication that he knows whales are in the gold market buying up gold.

Here's exactly what Dalio said:
So I just want to emphasize that the way that I look at any market is to look at the buyers and the sellers. and to understand, you know, sort of who's buying and who's selling and what are the motivations behind that. and so in each one of those cases, and I think if I was to get in to that a little bit much I would actually be dealing with sort of some confidential information. I think the important thing here to understand is that gold just generally is something that large large buyers, those with lots of portfolios would like to accumulate over a very long time, very slowly.
You can listen to the entire interview here. But the interesting question is, what does Dalio know about "large large buyers" of gold? Remember, this is a man with $130 billion under management, there are not a lot of buyers that he is going to consider "large, large." He seems to indicate these buyers are going to be accumulating for years. It almost has to be central banks. But, regardless of who the buyers are, that this buying exists is a good bit of information to know. It indicates strong support for gold at these levels and the potential for much higher prices down the road--as in multiples of the current price.


  1. Robert, this is some of the best information you've ever published on your site. Dalio has previously discussed his view that we're in a generational deleveraging, and he seemed to be positioned for deflation. His recent comments about gold are, to my mind, dramatic examples of a change of forecast to an inflationary environment. And his "confidential" sources? It makes one's skin crawl...
    - RJD

  2. It's all part of the plan. Destroy the dollar and all the rest of the fiat currencies and be the only ones with any real gold when the music stops and we go back to a gold standard. Everyone else will be left holding worthless pieces of paper.

  3. First thing Dalio needs to do is pass English 101."If I was to...Holy smokes Does this guy really control a billion dollar fund?

  4. No more the fishes are being awarded by the crocodiles!!! The whales are far behind simply watching the gold market. Dollar has collapsed and gold will show a crystal path where ETF’s record paper promises prior to automatic price share conversion all around the globe.

    The interview was informative and some of the points are truly understandable to today’s real gold action with the emotional individuals. No federal could allow the multi dollar$ value to go around any corner and have the effect into its actual metals inventory.