There’s a goldmine opportunity in miners.
With gold about to hit $2,000, perhaps even $2,500, Warren Buffett’s Berkshire Hathaway has just started to jump into gold miners, like Barrick Gold.
“In the past, Buffett, the billionaire chairman of Berkshire, cautioned against investing in the metal because it’s not productive like a farm or a company. Now, gold miners are benefiting from surging bullion prices that are boosting profit margins as costs of production have steadied, making them increasingly attractive investments. Large miners including Barrick and Newmont Corp. have been hoping to woo back generalists who fled the sector years ago,” says Bloomberg.
From here, gold could rocket even higher.
All thanks to further fallout from the coronavirus, economic fears, tensions with China, central banks pumping liquidity into markets, and fear ahead of U.S. elections. Worse, the International Monetary Fund estimates the global economy could shrink by up to 5% this year, prompting central banks to pump billions into the financial markets.
“We’ve not seen this level where central banks are printing money at a zero interest rate. At zero interest rates, gold becomes a very, very attractive asset class,” said Frank Holmes, CEO at investment firm U.S. Global Investors, told CNBC.
The best part – there’s still plenty of time to jump into gold stocks, such as:
Barrick Gold Corp. (GOLD)
Barrick Gold engages in the exploration, mine development, production, and sale of gold and copper properties. It has ownership interests in producing gold mines that are located in Argentina, Canada, Côte d'Ivoire, the Democratic Republic of Congo, Dominican Republic, Mali, Papua New Guinea, Tanzania, and the United States.
Kirkland Lake Gold Ltd. (KL)
Kirkland Lake Gold engages in the acquisition, exploration, development, and operation of gold properties. It owns and operates four underground gold mines, including the Macassa, Holt, and Taylor mines located in northeastern Ontario, Canada; and the Fosterville Mine located in Victoria, Australia, as well as three milling facilities in Canada and Australia.
VanEck Vectors Gold Miners ETF (GDX)
The GDX ETF popped from a low of $16.18 to $43 and could run higher. This one seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index (GDMNTR), as noted by VanEck. Some of its top holdings include Newmont Corp., Barrick Gold Corp., Franco-Nevada Corp., and Kirkland Lake Gold.