Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Barrick Gold’s (NYSE:GOLD) share price has surged over 10% premarket today after it was revealed that Warren Buffet’s company, Berkshire Hathaway have a stake in gold miner…
According to SEC filings on Friday last week, Berkshire bought a stake worth $562 million in the company, making it the 11th largest shareholder.
The news has resulted in Barrick’s share price climbing 10.45% to $29.80 per share, meaning it is now up 45.19% for the year to date.
After spot gold prices recently broke the $2,000 level, rallying over 30%, Barrick’s share price touched as high as $30.68, before falling along with gold’s price.
Barrick Gold is a mining company that produces gold and copper, and has 16 operating sites in 13 countries, with its headquarters in Toronto, Ontario, Canada.
Berkshire’s position in gold is not one that Buffet would usually take as it doesn’t pay dividends. It is also relatively small in comparisons to other Berkshire Hathaway investments.
However, it is of significance as Buffet had previously warned against investments in the precious metal, saying it is not productive like a farm or company.
According to a report by Bloomberg, Buffet wasn’t the only one to invest in Barrick, with Paulson & Co also adding to its holdings in the company.
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