'Big Short' investors are bullish on gold because money is devaluing too quickly

• Three famed "Big Short" investors say gold remains a top long-term bet.
• Danny Moses, Porter Collins, and Vincent Daniel went on CNBC to explain why they're bullish.
• They cite rising debt levels, which they say could result in a "huge debasement" of the dollar.

Investors should be scooping up more gold for the long haul, according to three investors of "Big Short" fame.

Danny Moses, Porter Collins, and Vincent Daniel — three Wall Streeters who made a fortune betting against the housing market during the subprime mortgage crisis — says gold remains one of their top long-term bets in their portfolios.

That's largely because of rising debt levels in the US, Collins said to CNBC last Friday, with Daniel adding that the group saw a "huge debasement" of the US dollar in the coming years.

"It's too much," Collins said of the pace of government debt-taking. "Just think about that one dollar in your wallet. Tomorrow, it's worth what?"

The US debt notched a record $35 trillion this year, according to US Treasury data, reflecting a rapid pace of borrowing that's concerned economists for decades. Rising debt levels could fuel more hesitation among the US's debt buyers — something that could stoke inflation and hurt the value of the dollar, economists previously told Business Insider.

Collins and Daniel — the co-founders of Seawolf Capital — said they remained long on gold, gold miners, and precious metals like silver in their annual letter to shareholders. The financial firm has "bought almost every dip" in those assets over the past four years, the letter said.

Moses, the founder of Moses Ventures, said in an email to CNBC that he had a "large long" bet on Sprott Physical Gold Trust, which has rallied 16% so far this year.

Gold has also outperformed US Treasurys in "any timeframe" in history, Collins added, suggesting it was a superior investment.

"I just don't think Americans have enough gold in their portfolio," Collins said. "This trade we've had on for a long time, I think it just continues. And I think in 1, 2, 3, 5, to 10 years, you're going to make a lot of money — more money in gold than you would in US Treasurys."

Treasury auctions have been showing signs of sagging demand, partly due to concerns lingering over the US debt balance and higher-for-longer interest rates.

The price of gold, meanwhile, has climbed over 16% so far this year, with the precious metal setting a fresh record of $2,465 this month.