Thomas Kaplan is connecting the dots with Business Insider for the recent major events for all Gold mining industry. Warren Buffett has paved the way for more mutual funds, the insurance industry and pension funds to allocate a larger share of the equity portfolios to Gold. This tectonic shift will be starting from... 0.77% this summer! This is why we have been discussing here that fireworks will continue this year for our Gold sector even after the 4th of July:
"Buffett's Berkshire revealed a $564 million stake in Barrick Gold, despite the investor being one of gold's most famous detractors. Barrick owns 50% of Donlin Creek, a gold deposit in Alaska.
The project's other owner? You guessed it — NovaGold.
"The fact that Buffett has chosen Barrick means more eyes will be focused on Donlin," Kaplan told Business Insider.
"For me, this is as important news — and actually more financially rewarding — than when Buffett anointed silver as investible again and removed forever the stigma associated with silver investment that remained since the Bunker Hunt era," he continued.
"Lightning has now struck twice," he added. "Now I owe him two!"
Warren Buffett Dumps Goldman Sachs And Buys Barrick Gold: Investors Are Coming Home - Gold In The USA, Alaskan Elephant Country.
Gold is not Gold Bug’s religion only anymore. Investors are coming home. Gold is Real Money. Warren Buffett dumps Goldman Sachs and buys Barrick Gold. We have another piece of the puzzle put in place. The full circle. A lot of very smart people will explain to you what it all really means now. I will add just a few points relevant to our journey.
You have one more answer helping with your questions and explaining my very brave dream: to build TNR Gold using the best Warren Buffett principles, to build The Green Energy Royalty Metals and Gold Company like an investor would do for other investors to join. Now you can better understand why I put Gold and Warren Buffett in the same sentence many years ago.
Negative Real Interest Rates change everything. Gold is shining bright in the MMT Age. Time is a function of Energy. Money is compressed Energy. Gold is Real Money. There is nothing really esoteric at this stage - welcome to the Gold Genius Club. Now Warren Buffet revealed his $564 million membership. Eric Sprott has explained to us that the best Gold mining companies are literally printing money with expanding margins following the record high Gold prices.
Frank Holmes presented to us his case on why money managers cannot ignore Gold mining companies anymore. Funds are coming in Gold mining stocks chasing the rising cash flow yields in the MMT Age of Negative Real Interest Rates. The best Gold mining companies generate rising cash flow yields. Gold mining companies’ margins and cash flow yields are growing with the growing pile of negative-yielding debt, which is pushing the Gold price higher. Gold is the ultimate hedge.
The best Gold mining companies become wealth generators. As Mark Bristow, CEO of Barrick Gold puts it: “Self-funded Insurance Policy.” Now more money managers, including insurance companies and pension funds, will be allowed by their Boards to allocate funds to get at least some Gold exposure. A lot of them just cannot buy Gold, but they can buy Gold miners. Mainstream financial media is talking already about Gold as the real hedge and the only one which can substitute bonds in the “model portfolios” in the MMT Age.
This coming tsunami of funds seeking the increased allocation to Gold will be meeting the... 0.57% of Gold share in the global equity portfolios! This is why we were talking about real fireworks this year after the 4th of July:
"My dear Friends, we are here. Unimaginable events are happening. Not only our small worlds are affected, but we have a collectively shared manifestation on a global scale. If you read this, you can have a glimpse into my world. But you will see yours. Each of us will have to decide for ourselves, where we are going to live. Which Universe we will choose.
We are here. Gold has hit all-time high intraday at the US $2,078, new all-time high weekly close is at the US $2,035, and the new all-time high monthly close is at the US $1,976"
Alastair Macleod provided us with his insights into the game of music chars going in the Gold market. There is no Gold in “paper gold” - there is only paper. With Warren Buffett moving in, we will see very soon who is swimming without trunks in that “paper gold”, the tide is coming out with every physical delivery now.
But back to Barrick Gold and why "Investors are coming home", as Thomas Kaplan, Chairman of NovaGold put it? We have Peak Gold. Gold miners need new new “Elephant” projects to replenish the declining resource base. They need new giant projects just to keep Gold production at the same annual rate.
In his recent interview on CNBC, Mark Bristow has acknowledged that even if the Barrick Gold’s official Gold price is still $1,200 for all planning purposes, “they are using now $1,500 as the indication for a mid-term time horizon.” It will not escape your attention that nobody will be buying out Barrick Gold, probably, this year, but they will have to buy themselves something big and promising. Who will be talking the Gold price up going into the M&A market as the buyer? All recent developments around NovaGold, which we have discussed in great detail with you here, are pointing us to the brave scientific question for a pure curiosity pleasure at this stage. Who will buy NovaGold first in the fight for the solid lead as the number 1 Gold mining company in the world? Will it be Newmont Mining or will Mark Bristow conclude the “unfinished business” of the previous unsuccessful buy out attempt and will finally bring Donlin Gold “back home”? In the world moving super crazy fast into the $3,000 Gold as a new normal, for me, this is just a question of time now. Nor Barrick Gold neither Newmont Mining can afford to lose Donlin Gold to each other without a walk over effectively from the race for the crown of the world’s top Gold miner.
I must warn you again, as usual, that all my brave positive affirmations and dreams are based solely on my personal observations of public information available in the market and I do not have any other insider information. Always do your own research and now you can better understand another layer of my previous post. TNR Gold had its first double from a multi-year base. There could be some people who bought a ticket on our ship just by chance and who are not sure about the destination. Our journey involves very significant Risks of travelling, particularly nowadays, even if we are going to the amazing, possibly, even exciting opportunities. For all those who are not sure that they can hold the waves and withstand the seasickness, thank you and it will be much better for you to disembark now.
Nobody knows the future. We will be moving into the stormy waters again. I already know that I would like next to visit the very nice beach spot marked as a "10" on the map. There could be two more doubles potentially from here after very hard work with the sails and after a lot of blisters. In my very personal vision, we do not need anything really groundbreaking and dramatic, apart from very hard work and execution of the strategy which we discussed in details here, in order to really enjoy our journey and finally to get to the “50 cents” Party at the “Club 55”, just to bring sweet memories. But then it’s again: it is all my positive affirmations and “Never buy anything you cannot hold.”
Barrick Gold has Warren Buffett now and we have Shotgun Gold for your due diligence study below. “Investors are coming home.”
"Our Team at TNR Gold is wishing all the luck to our shareholders at NovaGold in the next stage for the development of Donlin Gold and we hope this exploration program will demonstrate that exploration and mining business can be done safely in the US even now. On our side of the great Alaskan Elephant Country, Shotgun Gold is ready for a major Gold mining Company to join our Story.
It was tough, but we used our "staying at home time" wisely. Auditors gave us the clean bill of health, Q1 MD&A and Financials are filed and I have finally received my newly acquired block of shares after closing our final tranche of the private placement. Read more."
Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions.
Do Your Own Research.
Business Insider:
Warren Buffett's silver purchase helped make Thomas Kaplan a billionaire. His gold bet is an even bigger boon: 'I owe him two!'
- Warren Buffett helped Thomas Kaplan become a billionaire when he bought 130 million ounces of silver in the late 1990s, just before Kaplan listed his silver-mining company.
- The Berkshire Hathaway CEO has done the natural-resources investor another favor by taking a stake in Barrick Gold last quarter.
- Barrick co-owns the Donlin Creek gold deposit in Alaska with NovaGold, which counts Kaplan as its chairman and largest shareholder.
- "Lightning has now struck twice," Kaplan told Business Insider. "Now I owe him two!"
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