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Warren Buffett buys gold

coinpalicecoinpalice Posts: 2,453 ✭✭✭✭✭

Buffett bought just under 21 million shares. Current stake is worth $563 million. he has spent his whole life down playing gold and now suddenly loads up on mining shares. why the change of heart?
https://www.kitco.com/news/2020-08-14/Warren-Buffett-buys-gold.html

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  • Landon6Landon6 Posts: 157 ✭✭✭

    oh

  • ms70ms70 Posts: 13,954 ✭✭✭✭✭

    Maybe he's thinking it's a safe haven more than an investment to ride out the elections?

    Great transactions with oih82w8, JasonGaming, Moose1913.

  • coinpalicecoinpalice Posts: 2,453 ✭✭✭✭✭

    he might be worried about the falling dollar also, maybe hedging

  • coinpalicecoinpalice Posts: 2,453 ✭✭✭✭✭

    it's tagged under mining shares

  • david3142david3142 Posts: 3,546 ✭✭✭✭✭

    @coinpalice said:
    it's tagged under mining shares

    Because people always look at the tags and not the thread titles? 🤨Anyway, I was mostly referring to the linked article.

  • coinpalicecoinpalice Posts: 2,453 ✭✭✭✭✭

    yeah, i guess it is misleading, was very surprised when he bought mining shares though, he never touched mining shares before or physical

  • OldIndianNutKaseOldIndianNutKase Posts: 2,700 ✭✭✭✭✭

    The US just recently created an additional 4-8 Trillion in debt to offset the Corona Virus. Other nations did as well. This government debt will, ultimately, be paid off through inflation of the currency. Gold will never be devalued to balance government debt.

    My son paid off some money he owed to me about ten years ago with two Buffalo PR bullion coins. I have been under water for over nine years, but now I am glad that I never liquidated them........naw the payment from my son was too special. I will just put them in my granddaughter's "secret" collection.

    OINK

  • davewesendavewesen Posts: 6,224 ✭✭✭✭✭

    He is buying the company, not their product.

  • CoinJunkieCoinJunkie Posts: 8,772 ✭✭✭✭✭

    @davewesen said:
    He is buying the company, not their product.

    True, but the company's profits are rather correlated to the price of gold.

  • coinpalicecoinpalice Posts: 2,453 ✭✭✭✭✭

    exactly, couldn't have said it better myself

  • AlongAlong Posts: 466 ✭✭✭✭

    This doesn’t look like a Buffett Investment. Likely came from one of his two sub mangers. Either Todd or Ted. They share one quarter end statement.

  • coinpalicecoinpalice Posts: 2,453 ✭✭✭✭✭

    they probably twisted Buffett's arm hard enough to get him to sign the check

  • OldIndianNutKaseOldIndianNutKase Posts: 2,700 ✭✭✭✭✭

    Barrick Gold has substantial gold reserves on their balance sheet. An increase in the price of gold has a significant impact on their balance sheet. Barrick's earnings will increase and those earnings will result in a much higher price in their stock. As was pointed out by @davewesen Warren is attracted to the increased cash flow and profit, and the increase in balance sheet.

    I wonder if Warren ever collected coins?

    OINK

  • coinpalicecoinpalice Posts: 2,453 ✭✭✭✭✭

    apparently no, unless the rumors are false, he never bought physical gold in any form, unless he collected silver coins?

  • ShaunBC5ShaunBC5 Posts: 1,729 ✭✭✭✭✭
    edited August 14, 2020 8:00PM

    Just so y’all know how mining reserves work, those are “proven” ounces that are still in the ground, but available for extraction. They are not ounces that have been mined and processed and waiting for some sort of sale. (In case anyone was unclear)

    Edit to fix typo.

  • OldIndianNutKaseOldIndianNutKase Posts: 2,700 ✭✭✭✭✭

    I would LOVE to liquidate my collection (or parts thereof) and just buy calls in Barrick GOLD. the coin market is not very hot now, but the stock market is HOT for gold stocks.

    OINK

  • coinpalicecoinpalice Posts: 2,453 ✭✭✭✭✭

    i agree, mining stocks even pay Dividends now, you can make much more money with the right mining company like barrick gold, but i'm in the middle of building a $10 liberty gold CC collection

  • NoGoldNoGold Posts: 41 ✭✭
    edited August 14, 2020 9:23PM

    I have owned Newmont mining stock for years. The biggest and best in the business. Hopefully Warren isn't done buying.

  • coinpalicecoinpalice Posts: 2,453 ✭✭✭✭✭

    i agree, i hope he buys more also, people like him move the spot price up on one purchase alone

  • air4mdcair4mdc Posts: 915 ✭✭✭✭✭

    @CoinJunkie said:

    @davewesen said:
    He is buying the company, not their product.

    True, but the company's profits are rather correlated to the price of gold.

    I owned Gold many many years ago when it was 15$ a share. Back then it was RandGold and then Barrick bought them. Can be a volatile stock that can hand you your behind. The mines have labor issues and civil issues, riots and civil uprisings. At one time the country shut power off to the mine..... that was real good for the stock.....not. I still trade it off and on. Just recently sold. Maybe have to buy more here soon.

  • Tiggs2012Tiggs2012 Posts: 167 ✭✭✭

    People forget when he actually bought physical silver years back? Have made more money in junior miners this year comparatively, poor Buffett stuck with large caps with his large cash hoard. Also done well with RH that he bought previously, that was his best performing stock,

  • rickoricko Posts: 98,724 ✭✭✭✭✭

    Gold is a safe haven in times of financial turbulence....whether it be investment in mines or bullion...The future holds a great deal of uncertainty.... Cheers, RickO

  • YorkshiremanYorkshireman Posts: 4,556 ✭✭✭✭✭

    @ricko said:
    Gold is a safe haven in times of financial turbulence....whether it be investment in mines or bullion...The future holds a great deal of uncertainty.... Cheers, RickO

    There is always a tremendous amount of uncertainty. The specific issues about which we worry varies.

    Yorkshireman,Obsessed collector of round, metallic pieces of history.Hunting for Latin American colonial portraits plus cool US & British coins.
  • jmlanzafjmlanzaf Posts: 34,561 ✭✭✭✭✭

    I think there's more to the story. If Buffet wanted gold, he'd buy physical like he did with silver in the early 2000s

  • tincuptincup Posts: 5,186 ✭✭✭✭✭

    Yes, there was a time when he bought silver. But, did not hold it very long, and then sold it at a rather cheap price if I recall. I think there might have been a political incentive for him to sell it when he did.... regardless, after he sold it, if I remember correctly, silver made a good move up. Ended up, he made a poor timing move with the silver (unless it paid off politically).

    ----- kj
  • tincuptincup Posts: 5,186 ✭✭✭✭✭

    @jmlanzaf said:
    I think there's more to the story. If Buffet wanted gold, he'd buy physical like he did with silver in the early 2000s

    I also suspect something more is at play. Based on what I recall with his silver 'investment' previously mentioned.

    ----- kj
  • YQQYQQ Posts: 3,314 ✭✭✭✭✭

    And, Key question,
    HOW do you know it is warren who buys - bought gold?
    how do you know it it not just a rumor?

    Today is the first day of the rest of my life
  • AlongAlong Posts: 466 ✭✭✭✭

    Buffett did not buy gold

  • TwoSides2aCoinTwoSides2aCoin Posts: 44,364 ✭✭✭✭✭

    He knows a thing or two....Because he's seen a thing or two. But I don't think we will ever hear him hype gold. Mines , unlike gold, don't just sit there, He don't do coins either. His wife told an inside source that coins are the worst investment. I believed his opinion is strong , as are his convictions. Don't buy what you don't know.

  • metalmeistermetalmeister Posts: 4,586 ✭✭✭✭✭

    Own both! Miners and the real thing. As many on our forum already do. Sleep well.

    email: ccacollectibles@yahoo.com

    100% Positive BST transactions
  • topstuftopstuf Posts: 14,803 ✭✭✭✭✭

    I hope he saves enough for his old age. o:)

  • topstuftopstuf Posts: 14,803 ✭✭✭✭✭

    https://www.zerohedge.com/markets/did-buffett-just-bet-against-us-berkshire-buys-barrick-gold-dumps-goldman?utm_campaign=&utm_content=ZeroHedge:+The+Durden+Dispatch&utm_medium=email&utm_source=zh_newsletter

    "What is most ironic about all of this is that Warren's father, Howard Buffett, is among the great gold bugs of all time.

    As we noted in 2010, a must read essay by Howard Buffett, father of the "legendary" investor who initially was so very much against derivatives then promptly changed his tune, discusses fiat money and gold, and concludes that "human freedom rests on gold redeemable money."

    Well....goll-LEE ! B)

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    edited August 15, 2020 8:44AM

    @tincup said:
    Yes, there was a time when he bought silver. But, did not hold it very long, and then sold it at a rather cheap price if I recall. I think there might have been a political incentive for him to sell it when he did.... regardless, after he sold it, if I remember correctly, silver made a good move up. Ended up, he made a poor timing move with the silver (unless it paid off politically).

    ========================

    Buffet held his silver from 1996 to approx 2006. Accumulating approx 120 MILL oz. A fairly long period. This has been documented and discussed on the Martin Armstrong site. It has been argued that WB was urged to get out of the silver investments by "the powers that be." It was also rumored that his stake helped create the starting inventory for the startup of SLV (2006) without upsetting the silver market. After riding silver for at most a double into 2006, it always seemed strange to me that he got out just when things were going to explode (into spring 2008, then spring 2011). He was smarter than that. Something "forced" him out. He got a nice payday from the govt when he bought bank stocks cheap during the 2008/2009 financial/TARP crisis. That could have been part of his pay day for "helping everyone out" during the SLV startup.

    Ironic that he's back into gold today, especially after his publicized 1998 rant about the stupidity of owning gold or gold mines years earlier. See next post. You can't make this stuff up. Buffet also called otc Derivatives "weapons of financial mass destruction," and no one should own them. It's just stupid. Yet during the 2009 financial crisis he ended up cheaply buying about $5 BILL worth of Too Big Too Fail bank derivatives........you know....to help out and all.

    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • AlongAlong Posts: 466 ✭✭✭✭

    Berkshire 13F does not reflect what Warren Buffett is buying any longer.

  • GazesGazes Posts: 2,315 ✭✭✭✭✭

    I think his purchase of anything to do with gold is significant especially in relation to his selling Goldman Sachs and reducing his holdings in other banks

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    edited August 16, 2020 3:59PM

    https://marketwatch.com/story/why-buffet-thinks-investing-in-gold-is-stupid-2013-04-18

    "Perhaps my favorite take on gold investing comes from Warren Buffett, the iconic investor behind Berkshire Hathaway. Delivered at Harvard in 1998, it goes a little something like this:

    “(Gold) gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."

    =======================

    Interesting that while giving that talk back in 1998 he was already accumulating silver. And starting in 1999, gold would go on a big run from 1999-2008.........FAR outperforming the stock market which was basically FLAT from 2000-2009. Gold went up 4X.....and eventually nearly 8X by 2011.....also FAR outperforming stocks. Warren blew it for that decade.

    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • jmlanzafjmlanzaf Posts: 34,561 ✭✭✭✭✭

    @tincup said:

    @jmlanzaf said:
    I think there's more to the story. If Buffet wanted gold, he'd buy physical like he did with silver in the early 2000s

    I also suspect something more is at play. Based on what I recall with his silver 'investment' previously mentioned.

    He had a couple hundred million ounces of silver that he stored offshore.

  • jmlanzafjmlanzaf Posts: 34,561 ✭✭✭✭✭

    @YQQ said:
    And, Key question,
    HOW do you know it is warren who buys - bought gold?
    how do you know it it not just a rumor?

    13 F filing. Though it could be someone else in the company

  • Landon6Landon6 Posts: 157 ✭✭✭

    NICE COINSSS

  • bidaskbidask Posts: 14,017 ✭✭✭✭✭

    @Gazes said:
    I think his purchase of anything to do with gold is significant especially in relation to his selling Goldman Sachs and reducing his holdings in other banks

    I bought banks this quarter .

    I already own gold .

    We will see

    Most likely his younger portfolio managers convinced him to take a position

    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • TwoSides2aCoinTwoSides2aCoin Posts: 44,364 ✭✭✭✭✭

    @Landon6 said:
    NICE COINSSS

    Well put.

  • YQQYQQ Posts: 3,314 ✭✭✭✭✭

    Only buy gold or silver when the numismatic value exceeds the metal value by at least 100%

    Today is the first day of the rest of my life
  • MFeldMFeld Posts: 13,617 ✭✭✭✭✭
    edited August 15, 2020 7:07PM

    @YQQ said:
    Only buy gold or silver when the numismatic value exceeds the metal value by at least 100%

    That sounds backwards to me. If someone wants to invest in gold or silver, they have no need to pay considerably more for numismatic value.

    Edited to add: I can’t remember for certain, but I might have just replied seriously to someone who often posts in jest.

    Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.

  • YQQYQQ Posts: 3,314 ✭✭✭✭✭

    No need to remember. You must think of someone else.

    Today is the first day of the rest of my life
  • ShaunBC5ShaunBC5 Posts: 1,729 ✭✭✭✭✭

    I think he’s saying don’t buy collectible coins whose value is largely influenced by the spot price of the metal it contains...or maybe that’s what I’m saying? Either way, it’s how I read it.

  • coinpalicecoinpalice Posts: 2,453 ✭✭✭✭✭

    what he is saying is buy something like a 1891 CC $10 liberty gold which sell for about 2,200 dollars, the numismatic value of this coin exceeds the gold value by over 100 percent

  • coinpalicecoinpalice Posts: 2,453 ✭✭✭✭✭

    in a AU-58 grade

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