Post by Stealth on Aug 16, 2020 21:22:28 GMT 10
Colour me shocked.
www.marketwatch.com/story/buffetts-berkshire-buys-gold-miner-barrick-slashes-wells-fargo-and-jpmorgan-stakes-amid-coronavirus-2020-08-14?mod=home-page
Basically unloaded a huge chunk of Wells Fargo & JPMorgan Chase and instead bought into Barrick Gold Corp.
Seems like massive shift in thought process. Warren has always said that gold was a fool's investment as it doesn't make you any dividends etc. Seems he's singing another song now and it also seems like we're going to see a LOT of people following in his footsteps when the market opens again. My guess is that he bought into Barrick because he'll still make money from Barrick whereas if he'd bought physical he wouldn't. I suspect that he's moving money out of cash (is there anyone that doesn't think that the USD is going to be worthless in 6 months or so? Because this convinced me and I was already pretty sure of it!) and into the relative safety and money-making space of gold sales.
And being that he's one clever cookie it does give a pretty good indication of where he think the money is going to be made in the next year or more.Everything I've read or seen from him says that he doesn't invest unless something has a guaranteed return and is a good deal. He'd have to know that his shift into gold would show his lack of confidence in the US market. And given that money only has value while we believe it has value, what happens to the USD when one of the guys that's always been vocal about buying US investments suddenly shifts out of them and moves to gold?
I'd been predicting another downshift. Perhaps even as low as $1800 US before rallying again. After seeing this though I'm not so sure. We might have another rally that gets out of control as the copycat investors jump onboard. I think the next couple of weeks will be very interesting for people invested in metals (silver's had a nice rally too) and I'll certainly be watching curiously to see whether people take the bait or whether they just brush it off as a foible of an old man.
www.marketwatch.com/story/buffetts-berkshire-buys-gold-miner-barrick-slashes-wells-fargo-and-jpmorgan-stakes-amid-coronavirus-2020-08-14?mod=home-page
Basically unloaded a huge chunk of Wells Fargo & JPMorgan Chase and instead bought into Barrick Gold Corp.
Seems like massive shift in thought process. Warren has always said that gold was a fool's investment as it doesn't make you any dividends etc. Seems he's singing another song now and it also seems like we're going to see a LOT of people following in his footsteps when the market opens again. My guess is that he bought into Barrick because he'll still make money from Barrick whereas if he'd bought physical he wouldn't. I suspect that he's moving money out of cash (is there anyone that doesn't think that the USD is going to be worthless in 6 months or so? Because this convinced me and I was already pretty sure of it!) and into the relative safety and money-making space of gold sales.
And being that he's one clever cookie it does give a pretty good indication of where he think the money is going to be made in the next year or more.Everything I've read or seen from him says that he doesn't invest unless something has a guaranteed return and is a good deal. He'd have to know that his shift into gold would show his lack of confidence in the US market. And given that money only has value while we believe it has value, what happens to the USD when one of the guys that's always been vocal about buying US investments suddenly shifts out of them and moves to gold?
I'd been predicting another downshift. Perhaps even as low as $1800 US before rallying again. After seeing this though I'm not so sure. We might have another rally that gets out of control as the copycat investors jump onboard. I think the next couple of weeks will be very interesting for people invested in metals (silver's had a nice rally too) and I'll certainly be watching curiously to see whether people take the bait or whether they just brush it off as a foible of an old man.