Warren Buffett, he is a successful investor, a US businessman. He has always been one of the richest people in the world and one of the best and most influential investors of all time. Some people are born with luck in their mouths this applies to Warren Buffett, he has benefited wherever he has invested. As a result, any of his steps became the cause of attention in the corporate world. Recently, Warren Buffett has suddenly invested heavily in the gold company. Multiple times he has said that he doesn’t like investing in gold, but despite that, this time he has made a big bet by investing in gold. The question is why Buffett, a critic of the gold sector, is investing in gold?
He has bought shares of Barrick Gold Corporation, one of the largest gold mining companies in the world. Which is worth about five hundred million dollars. Due to this purchase, the share price of Barrick has increased from 26 decimal to about 29 dollars. He has cut back on investments in about a dozen banks and financial institutions.
Gold prices have continued to rise this year as various sectors have been hit by the global recession in Corona. As a result, gold mining companies are making huge profits.
In the meantime, prices are expected to rise further, surpassing all records. As a result, Buffett may be looking at the possibility of making a profit by investing in gold at the moment.
On the other hand, the huge amount of incentives given to economic recovery by other countries of the world, including the United States, does not seem to be doing much. In contrast, inflation is rising. That is why gold is being given importance as a safe investment in times of crisis.
Gold traders say that if the dollar rises in the international market, the price of gold goes down and when the dollar goes down, the price of gold goes up. While the value of money in the international market decreases, the price of gold in the local market also increases.
International market analysts say instability and political instability in stock markets around the world have led investors to buy gold as a haven. The price of the metal is rising due to increased pressure on demand. According to Buffett, this is the right time to invest in gold. But if you want to invest in gold, you must first know how to buy gold for an investment.