Warren Buffett has long ridiculed gold as a non-productive asset that is no match for the dynamism of American stocks. Yet now it seems he thinks gold is set to shine. Buffett’s Berkshire Hathaway took a $565m stake in Barrick Gold, the world’s second-biggest gold miner, in the second quarter.
Gold has rallied strongly this year, reaching new all-time dollar highs thanks to fears about inflation, dollar weakness and tumbling bond yields. Yet after peaking at $2,070 an ounce on 6 August the yellow metal tumbled by 9% over the following week. It remains up roughly 30% this year, but the pullback was a reminder that gains can quickly turn into losses in this volatile market. The gold miners are “riding high” this year, but extracting the metal is becoming more challenging, says Alistair MacDonald in The Wall Street Journal. The average cost of finding one ounce of gold has more than doubled since the decade leading up to 2009, according to figures from Minex Consulting. That said, constrained supply won’t necessarily mean higher prices: unlike oil, the metal is not consumed but is “virtually indestructible” once dug out of the ground.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
MoneyWeek news quiz: What will FSCS limit be raised to?Quiz The Autumn Budget, energy price cap, inflation, and Nvidia all made headlines this week. How closely were you following the news?
-
Energy bills to rise by 0.2% in January 2026Costs are rising to cover funding of the Sizewell C nuclear project in Suffolk
-
Should ISA investors be forced to hold UK shares?The UK government would like ISA investors to hold more UK stocks – but many of us are already overexposed
-
Why Scotland's proposed government bonds are a terrible investmentOpinion Politicians in Scotland pushing for “kilts” think it will strengthen the case for independence and boost financial credibility. It's more likely to backfire
-
Who is Jared Isaacman, SpaceX astronaut and Trump's pick as NASA chief?Jared Isaacman is a close ally of Elon Musk and the first non-professional astronaut to walk in space. Now, he is in charge of NASA
-
Three solid British stocks going cheapOpinion Ian Lance and Nick Purves, fund managers at Temple Bar Investment Trust, highlight three British stocks with strong cash flows and robust balance sheets
-
Is now a good time to invest in Barclays?Barclays' profit growth is healthy, and the stock is cheap compared with its rivals
-
Profit from other investors’ trades with CME GroupCME Group is one of the world’s largest exchanges, which gives it a significant competitive advantage
-
Key lessons from the MoneyWeek Wealth Summit 2025: focus on safety, value and growthOur annual MoneyWeek Wealth Summit featured a wide array of experts and ideas, and celebrated 25 years of MoneyWeek
-
Defeat into victory: the key to Next CEO Simon Wolfson's successOpinion Next CEO Simon Wolfson claims he owes his success to a book on military strategy in World War II. What lessons does it hold, and how did he apply them to Next?
