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Buffet Invests in Gold Mining Firm, Heading Bitcoin Prices to $50,000

Buffet Invests in Gold Mining Firm, Heading Bitcoin Prices to $50,000

Warren Buffet has always opposed the investment in solid gold by saying multiple negative comments. Once he stated that gold’s value is nothing in the vault, it depends upon the market’s wish to protect or destroy its worth. He has always believed that gold is an unproductive asset, though it goes well with the buyer’s hope of harvesting more in the future.

Therefore, his recent investment in a Canadian gold mining giant, Barrick Gold, comes out as a little wonder for the marketers and investors like Travis Kling, founder of Ikigai Fund. Kling tweeted that investment in the gold mining firm by Buffett is self-apparent at this point, as the future value of Bitcoin would rise. In 1998, Buffet had opposed gold investment; however, he is compensating that with the early investment while predicting the shining bright future of Bitcoin.

Recently, Buffett’s Berkshire Hathaway purchased USD 563 million shares in Barrick Gold. And, this purchase is not at all, cutting down his beliefs of not purchasing physical gold and storing it in the vaults. Buffet has just invested in a gold miner that will get him an exposure to the market movements of gold prices while harvesting the dividends from the firm.

According to Max Keiser, founder of Heisenberg Capital, this investment by Buffet will imply at least 5% global allocation to the gold, with a price of USD 5,000. As Bitcoin is digital gold, 1% of the whole allocation goes to BTC as well, putting its cap at USD 1 trillion. Thus, this investment of Warren Buffett in a gold mining company will indirectly encourage the boost in the price of Bitcoin, said investors.

Christopher Walter

Christopher Walter is a senior journalist at currentbitcoin.news. He expertises in bitcoin mining. He has keen interest in reading cryptocurrency trading. He is also a cryptocurrency blogger.