Did Buffett really change his mind on gold?

The Rules of Investing

Livewire Markets

Headlines in recent weeks have touted an about-turn by Warren Buffett as he finally bought gold after years of criticising. But is that really what happened?

In this week’s episode of The Rules of Investing podcast, I spoke to gold expert Jordan Eliseo, Manager of Listed Products and Investment Research at the Perth Mint. He points out that it was a gold mining company (Barrick Gold), not physical gold itself that Berkshire Hathaway purchased.

“They’ve bought a gold mining equity, which, to me, is entirely consistent with their mandate. It’s not surprising to me that they’d buy a gold mining company.”

We also discuss gold's strong performance this year and whether it can continue, and he shares some indicators that should tell us when the bull market in gold is getting long in the tooth.

Time Stamps:

  • 1:43 ­– Review of markets since Jordan’s previous appearance
  • 2:20 – How Jordan came to have an interest in gold and precious metals
  • 5:13 – Primary drivers of the recent rally in gold
  • 8:39 – Elaborating further into gold’s correction
  • 10:52 – Trends in the major sources of gold demand
  • 13:35 - Implications of the low availability of physical gold bullions for retail investors
  • 16:32 – The role of gold within a portfolio for different types of investors
  • 21:01 – Do gold mining equities act as a proxy for the commodity itself?
  • 24:10 – The broader effects of Warren Buffet’s changing view on the gold
  • 29:19 – Should investors be concerned with deflation and inflation?
  • 39:14 – The effect of inflation on retirement planning, purchasing power and returns
  • 42:17 – The most important gold indicators for investors
  • 45:39 – Jordan answers our three favourite questions.

Content discussed:

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The Rules of Investing
Livewire Markets

The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over...

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