Warren Buffett, a long term critic of both gold and Bitcoin as an investment, has made the news as he purchased shares in gold miner Barrick Gold and abandoned large banking stocks. Could this be another catalyst for both gold and "digital gold"?
We learned Friday that Warren Buffett held $565 million of Barrick Gold stock in Berkshire Hathaway. This large purchase of the second largest gold mining firm is highly irregular for Berkshire Hathaway, and came as he ditched stocks of major banks. Of note is Goldman Sachs, which Buffett has embraced since the Great Recession. This shows a clear signal that Buffett, who has always embraced investing in American companies with an emphasis on value investing is forecasting a new reality. Buffet's value investing style makes his choice of Barrick Gold interesting. It looks like there is plenty of room for gold to run, and Bitcoin is beginning to mirror gold. It is a popular safe haven asset in the making.
A loss in faith of the integrity of large banks during the Great Recession of 2008 led to the creation of Bitcoin. Gold and Bitcoin have both been highly favored this year as global instability has rocked financal markets. It has been theorized that Buffett has bought the gold miner shares as a hedge for his speculative stock holdings. Could Bitcoin be next?
Warren Buffett's criticism and both gold and Bitcoin over the years, and his purchase of large American banks has supported a narrative that was broken when we learned of his recent financial movements. Warren Buffett may purchase shares of AMD, Nividia or other companies that help mine Bitcoin, or he may purchase some gold and Bitcoin directly as a hedge. As times become more uncertain, even investing legends are changing their tune. Digital gold may soon be on Buffet's menu.
Originally published in my Publish0x account at:
Also published in my Steemit, Uptrend, Blurt, Golos and Whaleshares accounts I own.
Sources Cited:
Pixabay.
https://cointelegraph.com/news/warren-buffett-buying-gold-may-push-bitcoin-to-50k-investors-say
https://www.wsj.com/articles/warren-buffetts-berkshire-hathaway-joins-the-gold-rush-11597682998