Buffett’s Gold Investment Signals Change

Warren Buffett has long dismissed gold as a smart investment. Now, he is one of the sectors biggest investors. Buffett’s massive conglomerate, Berkshire Hathaway Inc., revealed a new, massive stake in Barrick Gold Corp. last quarter, the world’s second largest miner. Gold has reached record highs in the past few months, bolstered by a skid in government bond yields and the U.S. dollar. The precious metal has pushed levels of $2,000 per ounce, stabilizing around $1,950 over the past few months. Gold is up 24 percent this year, outperforming most stock market indexes. Some, however, are weary of investments in the yellow metal. Last week, gold slipped as U.S. Treasuries hit an eight-week high. However, gold is back up this week with Treasury yields slipping again. Gold enthusiasts still view it as a smart long-term investment with the global pandemic dragging on and governments spending trillions to support their economies.