The richest family on Earth just leaked where it’s putting its assets today…
Lord Jacob Rothschild is lead scion to the Rothschild banking dynasty of Great Britain. His family is rumored to be the wealthiest in the world… worth at least $400 billion.
And his elite Rothschild Investment Trust (RIT) has returned about 2,000% since it began in 1988.
Now RIT’s half-year statement sheds some interesting light on how Rothschild is handling today’s dicey investment environment:
The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale.
One might mistake the Rothschild report for a PBRG publication…
The “experimental” environment Rothschild mentions is a key reason we’ve urged our readers to maintain “maximum defense” over the last 18 months. Rothschild continues…
In times like these, preservation of capital in real terms continues to be as important an objective as any in the management of your Company’s assets.
In respect of [our] Company’s asset allocation, on quoted equities we have reduced our exposure from 55% to 44%. Our Sterling exposure was significantly reduced over the period to 34%, and currently stands at approximately 25%. We increased gold and precious metals to 8% by the end of June. [Emphasis added]
We can’t help but notice the irony… One of the key families behind the demise of gold-backed money now turns to gold for safety in the fiat (i.e., paper money) system they helped create.
[There’s a famous quotation often attributed to family patriarch Mayer Amschel Rothschild:
Permit me to issue and control the money of a nation, and I care not who makes its laws.
It turns out Mayer Rothschild probably didn’t say it… but the lesson here is still valid: Once you turn away from sound money (gold) in favor of unlimited fiat (paper) currency, it’s only a matter of time before you distort the market beyond recognition.]
Irony aside, Rothschild and PBRG agree: Gold is a must-own “insurance policy” in these unprecedented times.
And we’re not the only ones who think so…
In our next item, The Palm Beach Letter’s Teeka Tiwari reveals which central bank is loading up not just on gold… but gold mining shares, too.
That’s right… the creators of our “funny-money” system are stocking up on the one thing they “hate” the most…