The price of gold has been falling after reaching record-breaking highs in January. Billionaire investor Thomas Kaplan believes it’s a buying opportunity, citing routine volatility rather than a long-term crack in gold’s value (1, 2).

Gold plummeted over 9% in one day after President Trump nominated Kevin Warsh for head of the Federal Reserve. Gold is considered a “safe haven” asset, often used as a hedge against inflation and financial uncertainty (3).

The Chicago Mercantile Exchange raised margin requirements for gold and silver futures contracts, contributing to the recent slide in gold prices (4). Kaplan views this as short-term volatility, emphasizing gold’s deep structural role in the financial system (5).

Traditional routes for investing in gold, like holding physical gold or investing in gold mining companies, come with drawbacks. Gold-backed ETFs offer a simpler option, but fees can be high. It’s important to understand gold’s limitations and volatility before investing (6).

Kaplan believes gold could rise to “tens of thousands of dollars” due to its scarcity and value in the financial system. Investors should consider gold as a long-term diversifier or insurance asset, understanding its role in a diverse investment strategy (7).

Read more at Yahoo Finance: Gold has taken a dive this month, but billionaire Thomas Kaplan says he has ‘every reason in the world’ to stay invested