👉This is Why Warren Buffett Sold Wells Fargo, JPMorgan, and Goldman stakes And is Buying Gold

👉This is Why Warren Buffett Sold Wells Fargo, JPMorgan, and Goldman stakes And is Buying Gold






The big news in the monetary metals these days is that Warren Buffett, the chairman, and CEO of Berkshire Hathaway and famed disliker of gold, sold bank stocks to buy gold mining shares. Buffett just acquired nearly 21 million shares of Barrick Gold worth $563 million. Barrick is one of the primary precious metals producing companies of the planet. Warren Buffett has always said gold is a bad investment, a shiny cube that does not generate earnings or pay a dividend like a stock, or interest like a bond. Buffett also dumped most of his Goldman stake and trimmed his JPMorgan and Wells Fargo holdings. Buffett massively unloading bank stocks is consonant with an expectation of inflation, which is what gold is usually a bet on. Never forget, Buffett plays the long game. And the long-term fate of Barrick is tied to the performance of gold. Mr. Buffett saw a rare opportunity. The Federal Government cannot afford to have the rate of Inflation rise. Therefore, they must do everything in their power to keep the rate low. Printing more Dollars is a necessary strategy. Plus, there's added pressure to control the deficit. Increasing inflation forces them to increase interest rates, thus increasing the amount of our Debt. For Mr. Buffett, this is a golden opportunity. Besides cutting his position in Goldman and JPMorgan, Buffett also liquidated his stakes in Travelers and Phillips 66, a tiny stub of a holding that had been valued at more than $25 million at the end of the year. Separately, Buffett also trimmed his positions in Davita, Verisign, Amazon, GM, and several other companies. Warren Buffett has long been critical of gold as an investment, saying that it has no utility, that you can't eat gold, it just sets there. And that the magical metal is no match for American mettle. He once wrote, Anyone watching from Mars would be scratching their head over how we treat the shiny stuff on this planet. Buffett dumping banks and buying Barrick Gold is a sea-change. The importance cannot be overstated. He sees global central banks have completely lost control; they’re printing trillions and Killing fiat money. The entire $100 trillion global funds biz just got turned on its head, Max Keiser tweeted. Warren Buffett has an enviable long-term record in the stock market. Buffett’s latest move shows that he is as sharp as ever. Berkshire Hathaway's boss has not been a fan of gold. As a matter of fact, he has often derided the precious metal. To the dismay of gold bugs, Buffett has been the de facto leader of the anti-gold crowd. There has been a belief that investing in gold was akin to betting against America. Just a few years ago, Warren Buffett was saying this about Gold: It doesn’t pay any yield; in fact, it costs you to own it. So why own gold when you could own Coca-Cola. Buffett deserves credit for shifting his stance to the new reality as a result of the irrational policies of massive borrowing and money printing by U.S. leaders, and when observing the unparalleled printing of money going on now. More importantly, it is the huge downside the dollar faces of a debt crisis emerging from this recession. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to smash that like button. And as You know friends, I rely on your donations to keep this channel functional, as you know, it takes a crazy amount of research and time to bring you this content on a daily basis, so I hope you consider helping with whatever donation you can afford. Thank You. In its recent quarterly, Berkshire Hathaway disclosed it had purchased stock 20.9 million shares of gold major Barrick Gold. The stock rose about 12% to a little more than $30 per share, pricing Berkshire’s position at around $627 billion. That may seem like a lot, but relative to Berkshire’s other positions, it accounts for less than 1% of its entire stock portfolio. And I believe that actually, one of Berkshire’s other investment managers, Todd Combs or Ted Weschler, is probably responsible for the buy. STILL, this is significant. One thing to note is not everything Berkshire Hathaway invests in is a decision that Buffett himself makes. This Barrick Gold investment was probably Todd Combs or Ted Weschler. I say this because, over the past few decades, Buffett’s pivoted from deep value investing (inspired by Benjamin Graham) to one where he buys businesses with sustainable franchises ;(think Apple, Berkshire’s largest holding). Warren Buffett is investing in a gold producing company. He's investing in a company at the bottom of a long stretch of lean years, which is now in the beginning stages of a long upward stretch of years of plenty, and that is quintessential of Buffett's renowned investment style. As the US Dollar continues to weaken under the weight of low rates and stimulus, gold will enjoy a value-adjustment upward that could last several years. Last time this happened from 2008 to 2011, gold nearly tripled. But Buffett is an investor in companies, rather than commodities. After all, companies produce things that can be sold; commodities don't. So, then if gold is going to enjoy an upward adjustment in value for some time, gold producers will enjoy bumper profits when selling their gold to the market. Buffett isn't parking his money in a commodity but is putting it to work in a company that produces a product that will increase in value over the medium term, translating into hefty profits. Shares of senior gold producer Barrick Gold rose sharply in value after Berkshire Hathaway's recent filing with the SEC indicated that the company, headed by well-known investor Warren Buffett, had taken a meaningful position in the GOLD stock. The filing indicated Berkshire had acquired about 20.9 million shares of Barrick at an average price of around $26.94. We note the purchase price was opportune, which one would expect, in that the stock lost a degree of investor support in early August to trade in the range where Berkshire took their position. Whether the new position signals a change in Mr. Buffett's view on gold as an asset for investment is unclear, since gold is already trading at record prices. Our sense is the price of gold, and the prospects that it may rise higher probably had something to do with the investment. More importantly though, we would expect that Berkshire Hathaway saw unrecognized value in Barrick Gold, in keeping with the company's history and Warren Buffett's investment philosophy. Their performance is obviously tied largely to the fate of Gold. It will outperform Gold to both the upside and the downside, dependent on where Gold goes. This investment indicates some degree of confidence in the direction of Gold from either Buffett himself or one of his managers. It’s not like it’s too crazy from Buffett regardless, as he owned large amounts of silver (not miners) at least twice in his investing career. The truth is, the success of gold mining and production companies are only as successful as the price of the gold itself. Because it costs Barrick Gold ~$950 to mine an ounce of gold, the company will remain profitable as long as the price of gold doesn’t drop below $950. In addition, Barrick Gold is also making a ton of money as gold is currently at $2,000/ounce, and assuming every quarter gold prices stay this way, Barrick Gold is a great cash cow! And this is what Warren Buffett, the chairman, and CEO of Berkshire Hathaway, released in his annual letter to shareholders. Quote: Our second non-traditional commitment is in silver. Last year, we purchased 111.2 million ounces. Marked to market, that position produced a pre-tax gain of $97.4 million for us in 1997. In a way, this is a return to the past for me: Thirty years ago, I bought silver because I anticipated its demonetization by the U.S. Government. Ever since I have followed the metal's fundamentals but not owned it. In recent years, bullion inventories have fallen materially, and last summer, Charlie and I concluded that a higher price would be needed to establish equilibrium between supply and demand. Inflation expectations, it should be noted, play no part in our calculation of silver's value, End of Quote. Gold stocks and precious metals are a good investment (or store of value) in times when massive money printing is taking place. Buffett’s conversion to gold is a signal for other stock market investors. They usually buy or sell solely because of what Buffett does. Gold has no earnings and does not pay a dividend. But you need to understand that all fiat currencies in history go to zero value after 30 ~ 50 years or so. When that happens, the price of gold and silver goes to infinity. However, it doesn't matter because the fiat currency is then worth NOTHING. The trick is to convert gold or silver to real goods & goodies at the right time. So the trick is ABSOLUTELY NOT to hold gold and silver until it reaches the highest price in the collapsing fiat currency. The trick is to hold gold and silver until its trade value against other useful goods and goodies is maximum. It will not be easy to choose exactly the perfect moment, but if you have any quantity of gold and/or silver, you don't need to choose exactly the perfect moment to do VERY well. However, what is most important of all is choosing wisely what goods and goodies you trade your gold and/or silver for when the time comes. Overall, gold is a very small market compared with the stock market. Even a small amount of inflows into gold from large-cap tech stocks may cause a big spike in the gold price. Buffett is out of the banks, because The banks are bankrupt, and a major banking crisis is coming fast. The Fed and Treasury to take over the banking system. The Fed and Treasury helicopter fake money directly to people to avoid mass rioting. This is a time to think about how much gold and silver do you have. Gold is far from overpriced. Even $10k an ounce gold won't be overpriced. Gold is a hedge against economic / currency collapse. While we are being misled into believing ALL is well, and we are betting on a V-shaped recovery. EXPECTING economic growth to continue, consumers and businesses recovering, etc. Does anyone REALLY believe BOTH consumers and businesses will be unaffected by this shutdown, and by all this public debt being printed, etc... The US Congress demonstrates how irresponsible our leadership is. This is all political positioning. What about housing, rents, and mortgages, commercial leases, etc.? Bottom line, if this irresponsibility persists, we could destroy the US Dollar as a fiat currency, as fiat means NO metal backing, just confidence, and the faith of the currency holder!! What about other nations as we are the global reserve currency? We have lost much stature, esteem, confidence, etc.? How likely is it that IMF or the World bank could propose a basket of currencies as an alternative? That action would severely damage our standard of living. Only gold Assures holders; some of their wealth is protected against uncertainty and loss!! This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my back up channels, I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends!