Buffett Buys Gold!

Buffett Buys Gold! Now I’ve seen it all! Hey everyone and welcome to another weekly recap post for August 16, 2020.  Yes, we got some pretty big news on Friday about Buffett’s position in Gold.  Let’s talk about it.

But first, my disclaimer: this post contains affiliate links where the blog may receive a small commission on any sales from Silver Gold Bull, EQ Bank, Questrade and Tangerine.

Buffett Buys Gold

It came out on Friday after the market closed that Warren Buffett’s Berkshire Hathaway disclosed a half billion dollar position in Barrick Gold Corp (ABX).

So that means that Gold and gold stocks are in for a big move on Monday when the market opens.

A lot of people in the gold community will be cheering this news, but it doesn’t bode very well for the stock market or the global economy moving forward.

For Buffett’s entire investing career he has talked down owning and investing in gold. Check out my post on the Top 10 Warren Buffett Quotes for what he said about gold (#10).

I think this move will spook the market. First, Buffett did not buy any stocks during the March crash. In fact, he sold a bunch of airline stocks and other investments. Now he’s sold off a big chunk of his bank stocks (Goldman Sachs, Wells Fargo and JP Morgan).

Now a half billion investment in Barrick Gold Corp is not a huge investment for Buffett. After all, he’s sitting on a 140 billion dollar cash pile. But this move does offer an idea as to where the Oracle of Omaha sees returns coming from over the next few years.

Where Will Future Returns Come From?

Buffett also bought more shares of oil producer Suncor Energy. Buying gold and oil – and commodities more generally, tells me that Buffett is joining the inflation crowd.

Commodities are sitting just off their multi decades lows and appear poised for a massive bull run. Precious metals like gold and silver have already made big moves and I see that copper and other base metals are moving up. Eventually oil will join in.

So I’m buying and continuing to hold my oil stocks and will hold the gold miner index. If you plan to follow Buffett’s approach sign up with Questrade and start investing!

Canada Will Massively Benefit From This

Canada is a commodities super producer. The 2020s should belong to us! We have it all: oil, gold and silver, iron ore, forestry products, agriculture etc.

I think Canada has huge potential going forward. But I really wish our political leaders would wake up and realize it!

Save, Invest, Build Wealth and Prosper

In case you’re wondering here’s where I park my money and some financial services that I use:

For my precious metals I use Silver Gold Bull because they price match.

For my Daily banking I use Tangerine. 

For my Savings I use the EQ Bank Savings Plus Account. Never heard of it? Click the link to check out my EQ Bank Savings Plus Account Review.

For investing I use a combination of TD Waterhouse (for legacy investments) and Questrade (low cost stock purchases and free ETF purchases).  If you haven’t done so already, check out my Questrade Review to see why it’s the best deal around.  Get $50 in Free Trades when you signup for Questrade through this link.