Warren Buffett's gold bet has 'made it safe' to buy the metal, billionaire investor Thomas Kaplan says
- Warren Buffett's
Berkshire Hathawaytook a surprise stake in Barrick Goldearlier this year.
- The famed investor's endorsement could spur more investors to bet on the metal,
NovaGoldchairman Thomas Kaplansaid on an earnings call this week.
- "He's made it safe for anyone interested in gold to be looking at the gold narrative," he added.
- Kaplan previously benefited from Buffett's unexpected purchase of 130 million ounces of silver in the late 1990s, as it legitimized the metal as an investment.
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Warren Buffett's surprise bet on Barrick Gold has given investors the green light to buy the precious metal, billionaire investor Thomas Kaplan said on NovaGold's third-quarter earnings call this week.Buffett "effectively detoxified gold" when his Berkshire Hathaway conglomerate revealed a $564 million stake in the gold miner in August, the NovaGold chairman said.
Read More: BlackRock's investment chief breaks down why Congress passing a second round of fiscal stimulus is 'quite serious' for markets and the economy — and pinpoints which sectors will benefit in either scenarioBarrick and NovaGold are 50-50 owners of the Donlin Gold project in Alaska, making Kaplan a major beneficiary of a Buffett bet for the second time.
Buffett disclosed his purchase of 130 million ounces of silver in February 1998, legitimizing the metal as an investment shortly before Kaplan took his silver-mining company public. Kaplan personally thanked the investor at a dinner several years later.Berkshire's
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Some are seeking to diversify their portfolios, find a haven in rocky
Supply drivers also support higher prices, Kaplan said. Falling ore grades and yields, fewer explorers striking gold, rising production costs, shrinking inventories, and jurisdictional risks are creating a "perfect storm in gold."
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