Warren Buffett Turns Positive On Gold, Negative On Banks

The writing is on the wall, and as I have written about numerous times, Central Banks are well aware of the necessity to move a significant portion of their reserves into gold bullion, which is exactly why they have been net positive buyers over the last couple of years.

Central Banks have been steadily increasing their holdings while the rest of the masses foolishly ignored the safety of precious metals, even while the risks continued to mount all around them.

This of course does not include everyone, but in the grand scheme of the investment community, those who have partaken in the steady accumulation of precious metals are a dedicated-but-small percentage of the overall markets.

I believe that this is set to change—and in a very significant way.

One of my predications at the start of this year was that 2020 would see the institutional investor change their opinion on investing in precious metals, leading to a boon for the metals as the "smart money" began to pile into both gold (GLD) and silver (SLV) bullion, resulting in a renewal of the bull market.

This is exactly what we are starting to see, as arguably the most renowned investor in the world, Warren Buffett, has made a significant move into the precious metals marketplace.

Warren Buffett Moves on Gold

On August 14th, there was a 13F filing update within the United States, which gives valuable insight into what the "smart money" is currently buying.

Many other market participants respect these investors and will often take their lead, investing their funds into what the "smart money" has already moved in on, often causing a self-fulfilling trend to occur.

Warren Buffett is one of the most-watched names within these filings, as he has been heralded by many as one of the greatest investors of all time.

Therefore it shocked and stunned many within the markets when it was revealed through these 13F filings that Berkshire Hathaway’s (BRK-A) activity showed a drastic change in course, with the fund making a major move on the Canadian mining company Barrick Gold.

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Disclaimer: The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott ...

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