Replies

I did this FR post on 8/18/20 when the Buffett/GOLD subject came up. I’ll do it one more time for reference as to what he is really doing...Bob

8/18/20
While Buffett’s purchase of about 21 million shares of Barrick might seem like he is changing his attitude about hard gold (bars), his investment in Barrick makes considerable sense. Note that the stock symbol for Barrick is “GOLD” so when the news states that Buffett buys “gold”, the actual news is that he bought a huge quantity of a stock in a mining company with with the symbol of “GOLD”.

From Buffett’s standpoint, Barrick pays a pretty good dividend plus has increased in value. A good stock for Buffett to add to his portfolio. (Which in reality is only about 0.3% of the entire B-H portfolio).

The big deal here is that Barrick is probably going to be the miner who will develop the Pebble Mine in Alaska. Pebble is the largest undeveloped Copper, Gold, Silver (and some Rare Earths too) in the world. And unlike lots of mines around the world, there is little concern for the eventual developer that some foreign country’s dictator will take it over after development.

Northern Dynasty (NAK) has spent years proving that this is a huge deposit and they just received the FEIS (Final Environmental Impact Study) from the COE. Completely favorable and contrary to the Greenies, there are no Salmon anywhere near this proposed mine. Alaska traded forested “State” land for this bare, dirt area that the Fed’s owned. Specifically for mineral mining.

Within the next two weeks, the ROD (Record of Decision) will be filed and the Fed’s will then turn it over to Alaska for their approvals. Alaska really wants this mine. Jobs, income, development for the local tribes.

Note that Trump had the Governor of Alaska down for a chat a few weeks ago.

And that’s why Buffett bought a huge chunk of Barrick. It’s an incredible opportunity for years and years of very profitable mining. And that’s the rest of the story.