Sunday, January 17, 2021
  • Contact Us
  • Privacy Policy
FIND CRYPTO NEWS
Advertisement
  • Home
  • Latest News
  • Crypto News
    • Bitcoin
    • Ethereum
    • Ripple
    • Litecoin
    • Altcoin
  • Live Cryptocurrency Prices
  • Analysis
  • Blockchain
  • Regulation
  • Trading
No Result
View All Result
FindCryptoNews.com
  • Home
  • Latest News
  • Crypto News
    • Bitcoin
    • Ethereum
    • Ripple
    • Litecoin
    • Altcoin
  • Live Cryptocurrency Prices
  • Analysis
  • Blockchain
  • Regulation
  • Trading
No Result
View All Result
FindCryptoNews.com
No Result
View All Result
Home Regulation

Gold and Bitcoin Hater Warren Buffett Invests in Gold Mining Giant Barrick

August 15, 2020
in Regulation
5 min read
Gold and Bitcoin Hater Warren Buffett Invests in Gold Mining Giant Barrick
586
SHARES
3.3k
VIEWS
Share on FacebookShare on Twitter

You might also like

YouTuber Ali Spagnola Accidentally Turned $50 in Bitcoin Into $39,000

Ripple Opens New Remittance Corridor Between Malaysia and Bangladesh

Ripple CTO Talks About His Experience With the First ‘Bitcoin Casino’

Legendary American investor Warren Buffett, chairman and CEO of Berkshire Hathaway, and the world’s fifth richest man with a net worth of around $80 billion (according to Bloomberg), appears to have softened his stance on gold.

Buffett has never tried to hide his disdain for gold and Bitcoin, neither of which he considers an investable asset since, in his words, they do not produce anything (unlike, say, businesses, farms, or real estate).

According to an article by Matthew DiLallo for The Motley Fool, which was published on 13 September 2014, at a speech given at Harvard University in 1998, Buffett had this to say about gold:

“[It] 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.”

In his 2011 Letter to the Shareholders of Berkshire Hathaway Inc., he explained that he considered two categories of investments as highly risky:

  • currency-based investments, such as bank deposits, bonds, and money-market funds
  • investments in non-productive assets, such as gold

Buffett does not like the first category because such assets lose their purchasing power over time due to inflation:

“Over the past century these instruments have destroyed the purchasing power of investors in many countries, even as the holders continued to receive timely payments of interest and principal.

“This ugly result, moreover, will forever recur. Governments determine the ultimate value of money, and systemic forces will sometimes cause them to gravitate to policies that produce inflation.

“From time to time such policies spin out of control.”

As for the second category, he says that such assets are “purchased in the buyer’s hope that someone else – who also knows that the assets will be forever unproductive – will pay more for them in the future.”

He then focused his attack on gold, which he considers the best-known example of a non-productive asset:

“Gold, however, has two significant shortcomings, being neither of much use nor procreative.

“True, gold has some industrial and decorative utility, but the demand for these purposes is both limited and incapable of soaking up new production…

“What motivates most gold purchasers is their belief that the ranks of the fearful will grow. During the past decade that belief has proved correct.

“Beyond that, the rising price has on its own generated additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis. As ‘bandwagon’ investors join any party, they create their own truth – for a while…




“But bubbles blown large enough inevitably pop. And then the old proverb is confirmed once again: ‘What the wise man does in the beginning, the fool does in the end.’”

As mentioned earlier, Buffett also does not like Bitcoin for more or less the same reason as gold, i.e. he considers it another example of a non-productive asset, as he explained

On 7 May 2018, during an interview with CNBC’s “Squawk Box”, he explained why he hated Bitcoin so much:

“When you’re buying nonproductive assets, all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along, but the asset itself is creating nothing.”

Well, now, the man who has so often explained why gold is such a terrible asset, seems to have found some love for gold, or at least gold mining, perhaps due to worry over potential upcoming high inflation caused by all the monetary and fiscal stimulus measures that will be needed to fight the economic impact of the COVID-19 pandemic.

On Friday (August 14), MarketWatch reported that according to 13F filings with the U.S. Securities and Exchange Commission (SEC) for the period ended 30 June 2020, Buffett’s Berkshire Hathaway sold 26% of its stake in Wells Fargo & Co. and about 61% of its position in JPMorgan Chase while buying nearly 21 million shares of Barrick Gold Corporation (NYSE: GOLD).

Barrick, the world’s largest gold mining company by annual production, “has gold and copper mining operations and projects in 13 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia.”

Barrick’s shares “trade on the New York Stock Exchange under the symbol GOLD, and on the Toronto Stock Exchange under the symbol ABX.”

On May 6, Mark Bristow, the President and CEO of Barrick, said during an interview with CNBC’s “Squawk Box”:

“With the response to Covid, as you point out, we’ve taken that quantitative easing to a different level, and of course that puts pressure on paper money, and you measure that with the price of gold… and you’ve seen the price of gold go up in all currencies across the globe in recent times.”

He later added:

“This situation is what we’re all about, giving our investors an opportunity to have a self-funded insurance policy against a global financial crisis.”

It is worth noting that at the time of this interview, the price of gold was around $1,700 an ounce. On Friday (August 14), gold closed at 1,944.27 an ounce.

Famous gold bug and Bitcoin skeptic Peter Schiff, who is the CEO of Euro Pacific Capital, a full-service, registered broker/dealer specializing in foreign markets and securities, as well as founder and Chairman of SchiffGold, a full-service, discount precious metals dealer, had this take on Berkshire Hathaway’s investment in Barrick Gold:

Buffett’s decision to buy Barrick #Gold will legitimize the sector in the eyes of mainstream portfolio managers, who now have the green light to follow Buffet’s lead without being criticized by their peers or fired if their outside the mainstream “risky” bet fails to pay off.

— Peter Schiff (@PeterSchiff) August 15, 2020

And Anthony Pompliano (aka “Pomp”), a co-founder of crypto-focused asset management firm Morgan Creek Digital Assets, tweeted to say that he believed that Buffett should have invested in Bitcoin instead:

Warren Buffett bought almost 21 million shares of Barrick Gold.

That stake is worth $563 million today.

Warren should have bought 47,711 of the 21 million Bitcoin with his money instead.

One is an asset of the past and the other is the asset of the future.

— Pomp 🌪 (@APompliano) August 15, 2020

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.


Credit: Source link

Previous Post

Bitcoin Could Surge to $17,000 Once This Crucial Level is Broken

Next Post

Gold Bull Peter Schiff Still Thinks Bitcoin Is a "Fad" on Its Way to Zero

Related Posts

YouTuber Ali Spagnola Accidentally Turned $50 in Bitcoin Into $39,000
Regulation

YouTuber Ali Spagnola Accidentally Turned $50 in Bitcoin Into $39,000

January 17, 2021
Bitwise’s Crypto Index Fund Liquidates XRP Position After SEC Sues Ripple
Regulation

Ripple Opens New Remittance Corridor Between Malaysia and Bangladesh

January 17, 2021
Ripple CTO Talks About His Experience With the First ‘Bitcoin Casino’
Regulation

Ripple CTO Talks About His Experience With the First ‘Bitcoin Casino’

January 16, 2021
Pantera Capital Co-CIO Explains Why His Firm Is ‘Very Bullish on Ethereum’
Regulation

Pantera Capital Co-CIO Explains Why His Firm Is ‘Very Bullish on Ethereum’

January 16, 2021
Coinbase User Transfers $463 Million in Bitcoin Leading to Speculation of Institutional Investment
Regulation

Crypto Whale Pays $7 in Fees to Move Over $1 Billion on Ethereum

January 16, 2021
Next Post
Gold Bull Peter Schiff Still Thinks Bitcoin Is a “Fad” on Its Way to Zero

Gold Bull Peter Schiff Still Thinks Bitcoin Is a "Fad" on Its Way to Zero

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

ChainLink (LINK) Facilitating All it takes for Good Market Coverage in Blockchain Space

ChainLink (LINK) Facilitating All it takes for Good Market Coverage in Blockchain Space

December 11, 2020
Kyber Network Continues to Flourish Despite KNC Centralization

Kyber Network Thriving Since Upgrade, $20 Million Staked

July 10, 2020

Don't miss it

TRON (TRX) has Better Blockchain Technology with Market Cap of $2.28 Can Compete with PayPal
Crypto News

TRON (TRX) has Better Blockchain Technology with Market Cap of $2.28 Can Compete with PayPal

January 17, 2021
YouTuber Ali Spagnola Accidentally Turned $50 in Bitcoin Into $39,000
Regulation

YouTuber Ali Spagnola Accidentally Turned $50 in Bitcoin Into $39,000

January 17, 2021
Bitwise’s Crypto Index Fund Liquidates XRP Position After SEC Sues Ripple
Regulation

Ripple Opens New Remittance Corridor Between Malaysia and Bangladesh

January 17, 2021
Gold Begins Breakdown Against Bitcoin, Triggering 90% Decline On Per Oz Basis
Bitcoin

Bitcoin has 3 Days Before It Reaches Apex of Key Formation

January 16, 2021
Ripple (XRP) Offering What Stable Coins are not able to Offer
Crypto News

Ripple (XRP) Offering What Stable Coins are not able to Offer

January 16, 2021
Ripple CTO Talks About His Experience With the First ‘Bitcoin Casino’
Regulation

Ripple CTO Talks About His Experience With the First ‘Bitcoin Casino’

January 16, 2021
FindCryptoNews.com

FindCryptoNews is an online news portal that aims to provide the latest crypto news and real-time updates around the world. Feel free to get in touch with us!

Recent News

TRON (TRX) has Better Blockchain Technology with Market Cap of $2.28 Can Compete with PayPal

TRON (TRX) has Better Blockchain Technology with Market Cap of $2.28 Can Compete with PayPal

January 17, 2021
YouTuber Ali Spagnola Accidentally Turned $50 in Bitcoin Into $39,000

YouTuber Ali Spagnola Accidentally Turned $50 in Bitcoin Into $39,000

January 17, 2021

Subscribe Now

Loading

© 2020 FindCryptoNews.com - All rights reserved!

No Result
View All Result
  • Home
  • Latest News
  • Crypto News
    • Bitcoin
    • Ethereum
    • Ripple
    • Litecoin
    • Altcoin
  • Live Cryptocurrency Prices
  • Analysis
  • Blockchain
  • Regulation
  • Trading

© 2020 FindCryptoNews.com - All rights reserved!

  • bitcoinBitcoin(BTC)$34,821.00-6.74%
  • ethereumEthereum(ETH)$1,202.72-0.59%
  • tetherTether(USDT)$1.000.00%
  • rippleXRP(XRP)$0.274979-3.13%
  • cardanoCardano(ADA)$0.36644314.41%
  • litecoinLitecoin(LTC)$139.81-4.15%
  • bitcoin-cashBitcoin Cash(BCH)$474.33-3.58%
  • stellarStellar(XLM)$0.2991004.00%
  • moneroMonero(XMR)$153.77-3.73%
  • eosEOS(EOS)$2.73-2.41%
  • tronTRON(TRX)$0.029631-3.27%
  • nemNEM(XEM)$0.2182100.42%
  • neoNEO(NEO)$22.89-5.36%
  • dashDash(DASH)$123.22-2.75%
  • iotaIOTA(MIOTA)$0.412930-7.21%
  • ethereum-classicEthereum Classic(ETC)$7.51-2.51%