Buffett becomes a gold fan

The star investor didn’t think much of gold for a long time. Now he’s changing his mind. That should give a new boost to gold company stocks.

Gold fans are still ringing in their ears: Gold is a relic of the past, it does not bring any return, so it is irrelevant for investment purposes. So far so good with Warren Buffett’s investor views as far as gold is concerned. Or rather, as far as gold was concerned. Because slowly but surely he has to reorient himself with his gold commitments. “Buffett takes gold producers into the portfolio and continues to muck out at banks,” was a read in the Handelsblatt these days.

It may be true that gold does not generate any returns in terms of interest or dividends. But somehow the compensation for the inflation, i.e. inflation or negative real interest rates, is also a kind of return. In the past few months, if you take the price increase in gold as a measure of value, the return has been lucrative for gold investors anyway. Even a Warren Buffett can no longer just stand on the sidelines and wait.

Buffett is therefore buying the flagship of the gold mining industry into his portfolio: Barrick Gold. If the price of gold rises, this share of the top 2 gold mining also rises. But for more risky investors there is a wide range of fundamentally good gold stocks in the gold sector, which should have an even stronger leverage on the gold price. This circle includes Bluestone Resources and Treasury Metals.

Bluestone Resources – – Owns the Cerro Blanco gold project in Guatemala, which will produce an estimated 146,000 ounces of gold annually. Drilling returned up to 48.5 grams of gold and 97 grams of silver per ton of rock.

Treasury Metals – – Develops the Goliath Gold Project in Ontario. The start of production is approaching. First an open pit mine, later an underground mine. Good infrastructure and mining-friendliness are given.

Latest company information and press releases from Bluestone Resources (- -) and Treasury Metals (- -).

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