Shares

Buffett buys into gold after shedding bank shares

Warrren Buffet has bought into gold with a substantial purchase of Barrick Gold shares, the gold mining company that is trading at 5 year highs.

News of the purchase by Buffett’s Berkshire Hathaway investment vehicle sent shares in Barrick surging by over 8 percent in after hours trading following the release of a 13-F filing (US) yesterday that shown Buffett had bought a stake in Barrick worth $563m.

The purchase was the equivalent of 1.2% of the outstanding shares in Barrick – so it was pretty substantial.

Interest in the purchase of gold by Buffett has also been heightened by the fact that he is notoriously known not to be a fan of the asset class.

You can listen to Buffett’s reservations about buying gold nearly a decade ago in the video below:

In addition to the known dumping of airline stocks this year, Buffett’s purchase of gold comes at a time when he also reducing his holding in another unfavoured sector – banking.

Berkshire Hathaway has cut holdings in the likes of Wells Fargo and JP Morgan.

With the price of gold showing signs of falling from its recent peak, it will be interesting to see how the move of such a prominent investor influences the wider market and demand for gold from investors.

Add Comment

Click here to post a comment

Let's Talk

Argo & NasdaqThink Peter Wall gave it away in those answers. There is literally … Read More
Omega very bullishNever heard Colin so bullish before, he definitely knows good time … Read More
Getting into CBD stocksThanks I'm going to wait for MXC to dip a bit more big overra … Read More
Argo Blockchain Share Price Predi …Update. I'm not into even more profit. Am holding unless Bitc … Read More
ODX target price is?People obviously wanted to see we have a £200m contract in the bag … Read More
Hey, profit awaits! Free Sharebuyers Newsletter

Receive hot tips you can profit from - only sent when it matters. Twitter: @ShareBuyers.

error: ShareBuyers content is protected