Did Warren Buffett just wager against the American economy? His latest investment raises some questions


Warren Buffett has long been critical of gold as an investment, stating that “it has no utility” and that “magical metal” has no match for “American micro”. He once wrote that “someone from Mars must have been scratching his head” how we treat the shiny stuff on this planet.
Still Berkshire Hathaway BRK.A,
-0.58%
The boss acquired about 21 million shares of Barrick Gold,
-0.55%
Wells Fargo selling shares of WFC for $ 563 million,
+ 1.11%
And JP Morgan Chase JPM,
+ 0.03%
According to the 13-F issued on Friday afternoon.

The move sparked discussion across the Internet between Gold Bugs and other Wall Street watchers, who saw Buffett’s business signaling a change in his views on the market.

The popular Zero Hedge blog took a deep dive into Buffett’s protests, stating that it is a sign that no one other than the Oracle of Omaha now quietly appears to place bets against the United States, because of the “famous anti-gold The investor has left the banks “- the backbone of America’s debt-driven economy – in favor of the gold mine. ”

Of course, while gold worms and hardcore market bears come up with their own conclusions, Berkshire is still, nevertheless, deep in banks, including the Bank of America BAC,
+ 0.45%
, Where it has been putting its money in the last one month.
Sitka Pacific Capital Management’s Mike Shedlock omitted his explanation of the news, explaining in a blog post that it is as simple as “Buffett knows there are financial struggles due to COVID. And Barrick pays a dividend . ”Also, Barrick is a small piece of his overall pie, and Buffett did not withdraw from his wager at Amazon AMZN,
-0.41%
Or Apple AAPL,
-0.08%
.
“This is neither a huge cave nor a fundamental sea of ​​change about gold,” Schedlock wrote. “Potentially this is a short-term sell signal that matches the recent eye pullback.”
Meanwhile, the stock market has continued to hit record highs. Dow Jones Industrial Average DJIA,
+ 0.12%
Closed at 1.8% weekly gain, while S&P 500 SPX,
-0.01%
Less than 1% traded briefly in a record before the week ended. Nasdaq Composite Comp,
-0.20%
Barely higher for the week, as well. The index has posted 32 records so far in 2020.
Barrick Gold, at the last check, was over 8% after the hour.

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