In an interview with Bloomberg TV, billionaire founder of Equity Group Investments Sam Zell said, “For the first time in my life, I bought gold because it is a good hedge.” This according to an article in Bloomberg.

The article explains that investment in new mines dwindled after metal prices tumbled in 2011, and gold is down by almost a third from its peak. According to Zell, “Supply is shrinking and that is going to have a positive impact on the price.”

According to Bloomberg Intelligence data, the article reports,  cuts in spending on exploration and new projects led to a 40 percent reduction in the combined gold reserves still buried in mines—an indicator of production prospects—in 2017.