Gold Bugs Emerge in Some Unlikely Places

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Gold is the second largest position for legendary fund manager Jean-Marie Eveillard for the First Eagle family of funds. He actually owns all of the gold held in the HSBC bank in Times Square: a massive room filled with over $2 billion worth of bullion. When you combine the holdings for all four funds he manages, gold bullion and gold mining stocks comprise nearly 10% of Eveillard's total assets.

Gold, unlike most commodities, has almost no utilitarian value— unless you count jewelry as useful, which I don’t. Consequently, it is best to think of the precious metal as a currency. And unlike fiat (paper) currency which ultimately is worthless— as all paper currencies have proven to be— gold has real legitimate value...

And smart investors have taken notice.

One of the most notable investors to buy the precious metal is Jean-Marie Eveillard, the legendary fund manager for the First Eagle family of funds. Since 1970, Eveillard has produced average annual gains of 15%. If you’d invested just $10,000 at his fund’s inception, today you’d be sitting on more than $683,000.

Even more incredibly, Eveillard has only had two down years in all that time. And the two years that he lost money, he barely lost anything—his losses were only -1.3% and -0.26%! We’re talking about a virtually flawless record spanning more than three decades. Obviously this guy knows how to invest safely.

Today, Eveillard’s second largest position is gold. He actually owns all of the gold held in the HSBC bank in Times Square: a massive room filled with over $2 billion worth of bullion. When you combine the holdings for all four funds he manages, gold bullion and gold mining stocks comprise nearly 10% of Eveillard's total assets.

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