Warren Buffett has long been critical of gold as an investment. He once said it “has no utility” and that the “magical metal” is no match for “American mettle.”
He also said that “Anyone watching from Mars would be scratching their head” over how we value gold but he just acquired nearly 21 million shares of Barrick Gold worth $563 million, while selling shares of Wells Fargo, according to 13-F filing last week.
When a hater suddenly wants to possess the object of hate, you know something’s up.
Banks have always been viewed as the foundation of America’s economy. So when a billionaire gives it up in favor of something he talked so much trash about, it’s an undoubted shift in his view.
The Zero Hedge blog thinks Buffett is betting against the United States but Buffett has not exactly given up all of his interest in banks. Berkshire is still in Bank of America.
This leads me to conclude that Buffett is doing what many are starting to do, use gold as a hedge. The difference is the amount of wealth he is trying to protect. He has billions. Needless to say, the US economy is struggling and he needs a lot of gold to back up those billions.
So, instead of simply hoarding gold, he decided to get a piece of Barrick’s pie.
This seems a common strategy among billionaires. Naguib Sawiris also decided to start buying mining sites because he knows that gold will save people’s investments and he wants the world to buy it from him.
Gold’s status as a safe haven investment is not about to go away anytime soon but the confidence of billionaires like Sawiris and Buffett will help people see gold for what it is supposed to be, a permanent fixture of people’s financial portfolio but we don’t have enough of gold to secure everyone’s wealth which is part of the reason it is so valuable.
So, don’t let yourself get left behind. Stop procrastinating. Secure your wealth now with gold.