Hello my dear fellow finance interested people here on HIVE!
One of the few asset classes Warren Buffet dislikes are precious metals, especially gold.
Buffets says it is a non-productive asset, meaning it does not pay a dividend, produces nothing and just costs money storing and guarding it.
A lot of investors will question this point of view as gold is one of the bestperforming asset classes in 2024 and 2025 so far. Should all the gains vanish investors holding gold would stand there with nothing as they did not receive any payment for holding gold.
One possible play to change this is owning gold royalty companies like wheaton precious metals for example.
Gold royalty companies finance mining projects by purchasing a percentage of production or revenue (this is called “royalties” or “streams”). They do not operate mines directly. Traditional mining companies own, develop, and operate mining sites, taking on the full operational, environmental, and financial risks. These royalty companies do not, but benefit from an increasing gold price as they get more revenue from their streams and royalties.
And the best part is: they payout a part of their proceeds to shareholders via dividends (that are increasing if the gold price performs well)
Of course this is not financial advice as I am just a regular investor and I propose to everyone to do their own due diligence before buying any asset.
How do you peeps position yourself while gold and silver is going parabolic?
