The new Gold Rush is here.
With gold about to hit $2,000,Warren Buffett’s Berkshire Hathaway has just started to jump into gold miners, like Barrick Gold.
“In the past, Buffett, the billionaire chairman of Berkshire, cautioned against investing in the metal because it’s not productive like a farm or a company. Now, gold miners are benefiting from surging bullion prices that are boosting profit margins as costs of production have steadied, making them increasingly attractive investments. Large miners including Barrick and Newmont Corp. have been hoping to woo back generalists who fled the sector years ago,” says Bloomberg.
From here, gold could rocket even higher.
All thanks to further fallout from the coronavirus, economic fears, tensions with China, central banks pumping liquidity into markets, and fear ahead of U.S. elections. Worse, the International Monetary Fund estimates the global economy could shrink by up to 5% this year, prompting central banks to pump billions into the financial markets.
“We’ve not seen this level where central banks are printing money at a zero interest rate. At zero interest rates, gold becomes a very, very attractive asset class,” said Frank Holmes, CEO at investment firm U.S. Global Investors, told CNBC.