Warren Buffett’s Berkshire Hathaway Inc has bought a new 20.9 million shares in Toronto-based Barrick Gold Corp, one of the world’s largest mining companies.
This was disclosed in a regulatory filing detailing its US-listed investments as of June 30, 2020, according to Reuters.
Meanwhile, it has minimized some of its investments in America’s top banks. This includes America’s most valuable bank, JPMorgan Chase and other leading financial brands like Wells Fargo & Co and eliminating a stake in Goldman Sachs Group Inc.
Why Warren Buffett might be investing in Gold now?
Gold prices have gained 24% this year, and look likely to score more gains in the coming weeks.
The likely reason Warren Buffet might be buying shares of Barrick Gold Corp is related to the macro that quantitative easing isn’t helping enough to calm the global financial markets. This is coupled with exhausted fiscal policies that include tax breaks, tax holidays, and cash credits to low-income families, have done little in stabilizing the world’s fragile economy.
Also, global inflation levels are on the upside, and that seems to be good news for a deflationary asset like gold.
In addition, the resurgence of COVID-19 has heightened geopolitical uncertainty pushing precious metal higher, gold traders believe that the present record levels of gold might just be the norm, as more stimulus packages find its way to an already over-bloated financial system.
Investors usually monitor Berkshire’s quarterly filings to see what Warren Buffett and his portfolio managers are investing in.