Unlike most fund managers, who allocate a small percentage of the portfolios they manage to gold, billionaire commodities magnate and Tigris Financial Group head Thomas Kaplan reportedly has gone all in on gold.
"I've reached a point where I feel the only asset I have confidence in is gold," Kaplan says.
Reflecting his conviction that global economic instability could bring rising demand for gold, Kaplan has gone further than perhaps any other major investor, betting the majority of his wealth on gold and other precious metals.
"You've got a perfect storm with no apparent solution," he told The Wall Street Journal.
"If the world does well, gold will be fine. If the world doesn't do well, gold will also do fine … but a lot of other things could collapse."
Though he won't disclose how much physical gold he owns, Kaplan, controls up to 30 percent of the shares in some so-called junior miners. Together, his holdings amount to a nearly $2 billion bet on gold, more than the Brazilian central bank's bullion is currently worth.
Tigris subsidiaries have taken stakes in mining companies, including tiny firms that have yet to produce an ounce. Kaplan has not only loaded up on bullion but bought up properties in 17 countries on five continents where geologists are searching for gold.
However, if investors want to stock up on gold in a hurry, Kaplan notes, it will be hard to produce enough gold to satisfy demand.
Gold hit an exchange record of $1,242.70 a troy ounce at the Comex division of the New York Mercantile Exchange on May 12, but the price settled under $1,180 Friday as investors opted for cash amid global uncertainty, options expiration and a struggling equity market, thestreet.com reports.
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