Barrick Gold shares took flight with the economic effects of the coronavirus and the impact of legendary investor Warren Buffett’s large stock purchase. Shares of the world’s leading gold mining company have increased by approximately 11% in the last 24 hours. The gold company, which started to grow with this news from Warren Buffett, thus made a good start to the day.
Barrick Gold, a Canadian-based company engaged in gold mining, has increased its share values by 45% since the beginning of the year. We can say that the two most important players of this positive trend are Warren Buffet and the worrying effect of the pandemic process on investors. The company continues its activities with 16 mines located in 13 countries around the world. Barrick Gold company conducts operations related to copper mining as well as gold.
Warren Buffett Purchases Over 20 Million Barrick Gold Shares
Warren Buffett’s company, Berkshire Hathaway, has sold several bank shares and bought approximately $ 563 million worth of shares in Barrick Gold Corporation. For Berkshire, which owns more than $ 89 billion in Apple shares, the acquisition seemed like a small step, but it found a much larger impact on the Barrick Gold front.
Warren Buffett, who does not prefer and does not like gold investments, made statements stating that he preferred assets that provide direct cash flows against gold. Buffet’s investment in Barrick Gold was therefore even more confusing. But the implications of this for the gold mining giant are even more obvious.
Buffett Is Good For Shares
First of all, the fact that gold has always provided a safe image to the investor due to the coronavirus epidemic has played an important role in the company’s shares have increased by more than 45% since the beginning of the year. Gold prices exceeded $ 2,000 on an ounce basis, breaking a record with the impact of the pandemic on the economy, and gold became one of the best performing investment assets this year.
With the addition of Warren Buffet’s move to the gold scenario, which is a safe haven for investors against pandemic fears, the company’s shares managed to remain stable. Before the pandemic, Barrick Gold stock sold for about $ 15 in March, almost doubling that performance. Currently, Barrick Gold’s unit share price is sold for about $ 30.