American Consequences - July 2017

ANSWERS TO THE SAME THREE QUESTIONS

YOUR LOOK INSIDE REAL-WORLD PORTFOLIOS

We asked a few industry folks the same three questions. Here are their responses – along with a peek inside their portfolios...

1. In which monetary standard do you have the most confidence – gold, central banks, or bitcoin? 2. How have you expressed this view in your portfolio? 3. What’s the major risk you face as a result?

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3. I am pretty well protected. In a major crash like 2008, we all lost 30%. Milton Friedman once told me: “Van, you have half your free cash in gold, half in the banks and no debt, so you will only lose about 30% when the world falls apart.” He was correct long before 2008. George Gilder, Ronald Reagan’s most-quoted author, latest book: The Scandal of Money 1. Moore’s law continues in computer power, with the move to parallel graphics

Van Simmons, co-founder of David Hall Rare Coins and the Professional Coin Grading Service

1. Gold, and now I am considering bitcoin as a standard. Though the current

price increase scares me, I have little confidence in central banks. That being said, I have about the same amount in gold and in the bank. 2. I’ve been a long-time buyer of gold, along with other tangible items that hold value.

56 | July 2017

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