Why Warren Buffett Just Sold Gold

Recently, Warren Buffett sold 40% of his stake in the gold mining company; Barrick Gold. Considering Buffett has famously been a critic of investing in gold, his original investment was a shock to many investors.

Sure, investing in a gold mining company is not exactly the same as buying gold directly. However, as the price of gold is generally the biggest factor for a gold miner, it's fair to say this is the closest Buffett is ever likely to come to buying gold direct.

True to form, however, Buffett sold his shares shortly afterwards, which makes us ask the questions - why has Buffett sold gold? And should we sell gold too?

Therefore, in this video, I'm going to break down my research on gold, and share my thoughts on the safe haven asset.

No information on this channel is financial advice. I am not a financial advisor - I'm just an individual doing my own research, making my own investments and sharing my research with you. For you to consider any investment, you must do your own research. You also must not invest more than you can afford to lose as investing is inherently risky and you could lose all your money.

All information in this video was up to date as per my research at the time of recording but may now be outdated by the time you're watching this video so please especially remember this.

[samsungnite]

Always do the opposite from what they say, they never tell you the truth 🤭

[olderman]

I buy fractional gold, Buffet buys the entire mine.

[garyCauser]

Gold hasn’t gone up. The dollar has gone down....

[rubenk]

He sold, I bought gold. Stocks are insanely overbought. Due to unprecedented stimulus and inflationary pressures, David Hunter, thinks gold can hit $10, 000 or higher in this decade. To him, it's only a matter of time until these measures turn south again. In his mind, the stimulus that central banks and governments are bestowing upon the economy are perpetuating an uneven recovery — one that's not supportive of many sectors and facets of the economy that need help.

[sound]

Gold is outperformed by stock markets for several reasons: stocks represent asdets and companies, which are money makers and value providers (gold is money, not an asset). And the stock market will only show you the general picture of how companies are doing, but some of those companies are going broke and some are super successful. So Gold is the way to go if you want to save money the safe way. But assets, companies and stocks are the ones to use in order to make your capital grow in money terms...
So, stocks are money makers in certain way and gold is a value keeper. They are not to be compared one to annother. Is like comparing a saving plan to a bussiness plan.

[sheaung]

Gold has not risen in Value. For a non productive metal, there is no way to calculate its value. We can only say Gold has risen in price vs fiat currency. Please do not confuse value with price.

[mrnathan]

Incredible that you give both sides of the argument !!

[MissAwa]

Thanks for sharing. The other day heard Jim Rogers saying that he’s buying in Silver a lot for the same reason.

[stevenmqcueen]

Still waiting to hear “Why Warren Buffett Just Sold Gold.”

[ThomasHaberkorn]

Gold has many engineering applications, Mr Buffett

[Sam-jytj]

Hmmm.. you can’t really compare the indices & gold without showing “Total return” which includes dividends. Not a fair comparison.

[robryan]

Wait, Buffet puts billions in an investment then sells it just some months later? HMMMM, this does not pass the smell test...

[freethemz]

Thank you so much for this useful data! Greatly appreciated.

[RonPaulBot]

Some say gold has not increase value only that fiat currencies have lost value..

[rainbowcat]

Wouldn’t “selling most of his position” mean he sold 60% instead of 40%?

[charleskellymoneytipspodca]

Thanks for the useful comments and updates.

[timmassey]

I’m a relatively new subscriber to your channel, but I really enjoy your videos, I find them easy to understand. The things you can learn on YouTube is life changing. Keep up the good work 📈💰

[crimsonstar]

Loved your video. Curious as to your position on investing in gold through stocks vs holding physical gold. And if you allocate percentages to each?

You say you hold 10-15% of your portfolio in gold. Does this include physical gold and or silver or gold and silver stocks? or is it a mix? if so, which ratio? thanks.

[jingobatt]

Great job on presenting both sides on this one!