The Golden Age with Max Belmont

FEG Insight Bridge

On this episode of the FEG Insight Bridge Podcast, CIO Greg Dowling welcomes Max Belmont, Portfolio Manager and Senior Research Analyst at First Eagle Investments. Max discusses the growing interest in gold amid global economic uncertainties, exploring its role as a potential hedge against inflation and currency devaluation. The discussion also covers the dynamics of gold mining investments, the impact of central bank policies, and the comparison between gold and digital assets like Bitcoin.
Tune in for key insights on the enduring allure of gold and exploration of its strategic importance in today's investment landscape.
Key Takeaways

• Gold is prized as a potential safe haven due to its stability and limited supply. Unlike other commodities, gold does not corrode or degrade, maintaining its value over long periods. This makes it a potential hedge against economic instability and currency devaluation.
• The historical context of gold, including its role during periods of hyperinflation and economic turmoil, has influenced its perception as a stable investment. Central banks have shifted from being net sellers to net buyers of gold, especially after the 2008 financial crisis and recent geopolitical tensions, such as the Russia-Ukraine conflict.
• While both gold and cryptocurrencies like Bitcoin are seen as alternatives to traditional financial assets, they behave differently. Gold is a "risk-off" asset, providing stability during market downturns, whereas Bitcoin is more volatile and behaves like a "risk-on" asset, similar to growth stocks.
• First Eagle's approach to investing in gold includes holding physical gold and investing in gold mining companies. The investment strategy focuses on valuation, resilience, duration, and optionality to ensure a margin of safety and long-term value.

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Fejezetek

1. Introduction (00:00:00)

2. Episode and Introduction of Max Belmont (00:00:29)

3. First Eagle’s History and Philosophy (00:02:23)

4. Quantifying Gold Investments (00:04:49)

5. Gold as a Safe Haven? (00:06:14)

6. Comparison between Gold and Bitcoin (00:13:30)

7. Gold’s Role in Portfolios (00:16:50)

8. Central Bank Influence on Gold (00:22:20)

9. BRICS Interest in a Gold-Backed Currency (00:25:04)

10. Insight into Gold Mining Investments (00:27:34)

11. Books and Resources on Gold (00:32:52)