Why Warren Buffett’s Sold 43% of His Barrick Gold Shares

He is still following the same investing strategy at 90-years.

Image Credit: WallpaperAccess

High Uncertainty Due to COVID19

You know 2020 was a heavy year for all of us. Lots of unpleasant events happened around the world and in the USA we can’t remind. But the biggest one was COVID19 which is still present in 2021.

Low-Interest Rates And Higher Inflation

The decrease in the interest rate and increase in inflation are considered as pleasant for the gold. As the interest rate drops and inflation climbs two major things happen:

  1. Investors take money out of stocks, bonds, and other securities issued by the government and invest in gold to secure their money. As a result demand for gold increases and hence its price starts to climb high and high.
  2. The Fed continues on printing more funny money out of thin air and so the dollar gets weaker against gold. As the dollar goes weaker, more and more dollars are required to purchase an ounce of gold.

Key Takeaways

There are two key takeaways from the whole discussion on Warren Buffett's investing decisions.

A writer & dreamer. I write about business, finance, and marketing. @AhmadAl82230443

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