For years Goldman has made fun of not only preciousness metals but the people who invest in them saying things like:
Goldman Sachs has stated the following about Gold:
March 24th 2020:
“We have long argued that gold is the currency of last resort, acting as a hedge against currency debasement when policy makers act to accommodate shocks such as the one being experienced now,”
“We are beginning to see a similar pattern emerge as gold prices stabilized over the past week and rallied [Monday] as the Fed introduced new liquidity injection facilities with this morning’s announcement,”
June 19th 2020:
“However, as we have argued in the past gold investment demand tends to grow into the early stage of the economic recovery, driven by continued debasement concerns and lower real rates,”
April 7th 2020:
GS does “not recommend gold as a strategic asset class in a well-diversified portfolio.”
July 28th, 2020: After raising target of Gold price from 2000$/oz to $2300/oz said:
a potential shift in the U.S. Fed toward an inflationary bias against a backdrop of rising geopolitical tensions, elevated U.S. domestic political and social uncertainty, and a growing second wave of CERVESZZZA 1900 related infections,”
“Combined with a record level of debt accumulation by the U.S. government, real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge,”
“Much will therefore depend on whether investors in the West remain willing to buy large quantities of gold even at the current prices,”
Analysts at the bank also lifted the 12-month forecast for silver by 36% to $30 per ounce
Goldman Sachs Group GS has Climbed 281.2% in the past 20 years
SandP 500 Has Risen 136.3% over the last 20 years
So What Did Goldman Sachs Just Buy and Sell?
Goldman Sachs Shares
Most Shares in Big Banksters like: JP Morgan Chase, PNC, and Wells Flargo
Restaurant Brands International, the owner of fast food restaurants including Burger King and Popeyes, which struggled as customers stayed home more and regional restrictions forced dining rooms to close.
More: Kroger ( grocery stores ) and LIberty Media ( Atlanta Braves baseball team, Formula One racing, and Sirius XM Radio)
And $566 Million Worth Of:
$GOLD Barrick Gold
- 1.8BILLION shares
- Market Cap 48 Billion – which has a pretty good valuation to share price ( at least in the MINING sector,)
- BUT tons of tentacles in tons of mines.
- Many in Nevada ( my favorite place to mine ) Dominican Republic, Argentina, Papau New Guinea ( major problems there, with Govt. Just taking over mines and calling them theirs.) etc.
- Is a well known, SOLID Gold and Silver mining play.
- IN many NON SWAP nations with United States (not good)
- P/E ratio of 11 which is totally fine/good.
- Does pay a dividend of 1.04%
- Tons of Volume ( know some guys who day trade this, very predictable play. )
That seems like a LOT of money, it IS.. but that is still less than 1% of his current Murse.
AMAZING! So How Do WE Make Money On This?
We jump in to SILVER mostly and Gold miners. But which ones should we buy?
Lets Head To The Charts
Barrick and all other mines were hurt and either had to stop production or had to totally slow it down becuase of the Cervezza. There IS still a shortage of physical Gold Silver ETC.
Whats my prediction, should we Buy Barrick?
Its a slow moving play that likes to move WITH the price of gold.
I do think Buffet coming out and buying them IS a big deal, and will add more confidence and more NEW buyers into the sector and company.
I think Barrick will rally till possibly Wednesday night.
Thursday will consolidate and Friday people will take profits.
Macro picture is that it will continue to slowly rise till the next hulk smash. Where I will go do with the SPY and everything else. THEN it will go all time highs.
Eric Sprot, the man the myth the Legend investor in Gold And Silver has been moving his BIGGER, already mining positions into SMALLER Explorer positions for about a month.
He understands what matters most when thinking about money, Multiplying!