Barrick Gold News: GOLD Stock Soars 11% on Buffett Stake

Barrick Gold (NYSE:GOLD) stock is on the rise Monday following news that Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A,BRK.B) has taken a stake in the company.

A gold bar along with some coins made of precious metals.

Source: allstars /

The Berkshire Hathaway stake in Barrick Gold has it picking up 21 million shares of GOLD stock. That has a total value of about $564 million and sets the company up as the 11th largest shareholder in the mining company.

It’s worth pointing out that this is only a small investment for Berkshire Hathaway. However, it ditches the investment company’s norms. Warren Buffett is typically critical of gold and prefers other investments over it. That alone is likely to catch the eye of potential GOLD investors, reports MarketsInsider.

So what exactly is behind this Barrick Gold news? The novel coronavirus pandemic has some investors shedding their go-to investments in favor of metals, such as gold. These are considered safe bet during times of economic turmoil. That’s likely why Buffett’s company is investing in GOLD stock.

In fact, investors are already seeing the positive gains of gold during the pandemic. The value has shot up to over $2,000 per ounce, which is a first for the precious metal. Barrick Gold has also been benefiting from these changes with its stock increasing roughly 45% since the start of the year as of Friday’s close, CNBC notes.

Barrick Gold is a mining company based out of Toronto, Canada. It currently has copper and gold mining operations taking place in 13 countries around the world.

GOLD stock was up 11% as of Monday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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