Warren Buffett buys gold
coinpalice
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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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oh
Maybe he's thinking it's a safe haven more than an investment to ride out the elections?
Great transactions with oih82w8, JasonGaming, Moose1913.
Warren Buffett knows his stuff.
oh
he might be worried about the falling dollar also, maybe hedging
That’s a misleading headline. He bought shares of a gold mining company (that also happens to have the ticker GOLD).
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.
yeah, i guess it is misleading, was very surprised when he bought mining shares though, he never touched mining shares before or physical
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
He is buying the company, not their product.
True, but the company's profits are rather correlated to the price of gold.
exactly, couldn't have said it better myself
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.
they probably twisted Buffett's arm hard enough to get him to sign the check
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
apparently no, unless the rumors are false, he never bought physical gold in any form, unless he collected silver coins?
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.
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
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 $10 liberty gold CC collection
I have owned Newmont mining stock for years. The biggest and best in the business. Hopefully Warren isn't done buying.
i agree, i hope he buys more also, people like him move the spot price up on one purchase alone
I owned Gold many many years ago when it was 15$ 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.
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,
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.
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
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).
I also suspect something more is at play. Based on what I recall with his silver 'investment' previously mentioned.
And, Key question,
HOW do you know it is warren who buys - bought gold?
how do you know it it not just a rumor?
Buffett did not buy gold
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.
Own both! Miners and the real thing. As many on our forum already do. Sleep well.
100% Positive BST transactions
I hope he saves enough for his old age.
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 !
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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.
Berkshire 13F does not reflect what Warren Buffett is buying any longer.
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
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."
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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.
He had a couple hundred million ounces of silver that he stored offshore.
13 F filing. Though it could be someone else in the company
NICE COINSSS
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 give away money. I collect money.
I don’t love money . I do love the Lord God.
Well put.
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.
No need to remember. You must think of someone else.
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.
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
in a AU-58 grade