'Stars have aligned for gold': Warren Buffett's Berkshire takes $500-million stake in Barrick

‘Spectacular numbers’: As the price of gold rises above $1,800, miners eye expensive Canadian projects

During the past 12 months, Barrick’s stock has surged 65 per cent, steadily rising as a groundswell of investors flocked to gold as a safe haven amid declining real interest rates, economic uncertainty and a global health pandemic that is unprecedented in modern history.Against this backdrop, the price of gold is now near its highest levels ever, at US$1,987 per ounce on Monday, part of what Grosskopf and others believe is only the start of a historic bull cycle.

He predicted that Buffett would also invest in physical gold, and that his investments in Barrick and other gold miners would increase over time.Jackie Przybylowski, managing director of equity research, metals and mining, at BMO Capital Markets, said Barrick Gold does not fit the classic “value” investment, given that it’s not out of favour and not struggling in any particular way.

BMO Capital Markets on Friday said in a note that the “stars have aligned for gold,” given the economic uncertainty, fallout from the pandemic, massive economic stimulus, weakening U.S. dollar and declining interest rates.Gold miners have used the past few years to improve efficiencies and strengthen their balance sheets, setting them up to capitalize on higher gold prices, the bank’s analysts said.

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