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They take a structured, disciplined approach to investing that recognizes that market declines inevitably will occur. A steep drop in the dollar could lead to higher interest rates for the federal government and American private borrowers, as foreign investors demand higher interest rates to compensate them for higher risk. Savvy investors from all walks of life are taking this opportunity to diversify their portfolios and hedge their US Dollar bets. According to Forbes Warren Buffet owns 20% of the world's silver, Bill Gates owns 10-20% of Pan American Silver mines, and George Soros also has holdings in gold and silver mines. Modern Portfolio Theory is the philosophical opposite of traditional stock picking.
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