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Meet Warren Buffett’s Greatest Investment That He Will Never Make – CCN.com

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  • Warren Buffett should be buying gold this year as the commodity is expected to surge in value.
  • The stock market is expected to face turbulence.
  • The flight to safety and constrained supply will be catalysts for gold.

Warren Buffett’s faith in the stock market is legendary. The Oracle of Omaha has cut his teeth in the U.S. stock market and is an ardent advocate of the asset class. But there’s a chance that Buffett has lost confidence in the stock market of late, which is why he should be looking at gold as an investment.

The billionaire investor’s Berkshire Hathaway is reportedly sitting on more than $128 billion in cash. Buffett has gone four years without making a big deal, and it’s not surprising to see why he may be afraid of putting in stocks.

Gold prices are set to soar in 2020

Gold is currently trading at a spot price of $1,566 an ounce, but it’s widely believed that the commodity will end the year past the $2,000/oz. level.

Gold price chart.
The price of gold has soared in the past year, and it isn’t done yet. | Source: Kitco

City Index technical analyst Fawad Razaqzada is one of many who believes that gold will hit that magic mark this year thanks to a correction in the stock market:

If U.S. stocks were to correct themselves in 2020, then this surely could lead to elevated levels of safe-haven demand for gold … As the U.S. equity market bubble finally bursts, safe-haven demand could nudge gold past its 2011 peak of $1,920, before tagging the $2,000 psychological hurdle.

Razaqzada’s prediction is already coming true as investors are abandoning the stock market and loading up on gold thanks to geopolitical tensions. This is something Warren Buffett should have done as the rising tensions between the U.S. and Iran have sent gold prices to seven-year highs. Equities are expected to struggle in 2020 in light of a protracted conflict in the Middle East.

Higher oil prices will dent consumers’ spending power in the U.S. and also hurt corporate earnings. That’s bad news for Warren Buffett as he might have to keep sitting out of the stock market this year. The other option for Buffett is to buy gold.

Gold demand is expected to remain strong in 2020 on the back of central bank buying and the flight to safety, laying the groundwork for higher prices. Constrained supply will also play a role in boosting gold prices. BMO Capital Markets forecasts that gold production will decline in 2020, paving the way for prices to increase.

Warren Buffett’s hunting ground is in trouble this year

In his letter to shareholders a couple of years ago, Buffett had said:

The magical metal was no match for the American mettle.

The legendary investor was comparing gold’s returns to that of stocks, albeit in a skewed way. He was comparing how much a $10,000 investment made in stocks and gold back in 1942 would be worth in 2018. But what Buffett conveniently forgot is that the price of gold in the U.S. was fixed by law until 1975.

It’s a noble thought to have faith in America’s economy and invest in the stock market. But Buffett seems to be forgetting that the American economy is not in the best of shape this year, and companies listed on the stock market are overvalued. If U.S. companies are unable to meet earnings growth targets in 2020, their stock prices will crash in the event of a correction.

U.S. consumer confidence is in the doldrums, manufacturing activity is weak, and Trump seems willing to risk a war with Iran.

Gold price vs stocks returns chart.Gold price vs stocks returns chart.
Gold returns have been way better than stocks over the past two decades. | Source: Ycharts

Gold will continue to shine in such a situation. As it turns out, gold prices have handily beaten the broader stock market in the past 20 years and the yellow metal is your best bet at a time when a crash is in the offing.

So, it would be prudent for Warren Buffett to seriously consider an investment in gold this year and put his billions to work. If Buffett doesn’t do that, gold could become the greatest investment he never made.

Disclaimer: The opinions in this article do not represent investment or trading advice from CCN.com.

This article was edited by Sam Bourgi.

Last modified: January 7, 2020 4:20 PM UTC

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Funding unveiled for mining investment event – Whitehorse Star

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The federal government is investing $500,000 in an Invest Canada North initiative at a large prospecting convention this spring.

By Whitehorse Star on January 20, 2020

The federal government is investing $500,000 in an Invest Canada North initiative at a large prospecting convention this spring.

Yukon MP Larry Bagnell made the announcement on behalf of the Canadian Northern Economic Development Agency (CanNor) in Vancouver over the weekend.

The two-day northern-focused event will take place within the Prospectors and Developers Association of Canada Convention in Toronto.

“This project demonstrates the clear strategic advantages of partnership and collaborations in the North among industry, governments, service sectors and Indigenous development corporations to promote investment in the territories,” Bagnell said.

“Increased investment in the North benefits all northerners.”

Invest Canada North will be hosted in partnership with the Yukon Mining Alliance, N.W.T. and Nunavut Chamber of Mines and the three territorial governments.

It will consist of “an exclusive networking reception” of food and entertainment inspired by northern culture and a forum that will inform attendees of the investment opportunities in the North.

There will also be the opportunity to interview exploration stakeholders: mineral and mining companies, government officials, Indigenous development corporations, and others.

The conference will kick off on March 1 with a premier networking reception. Attendees will be invited to try the Yukon’s Sourtoe Cocktail, and there will be an Inuit throat singing performance.

The single-day forum will take place on March 2. It will include a keynote presentation by Anmar Al-Joundi, the president of Agnico Eagle Mines.

The three territories will each host individual forums throughout the day.

Byron King, the editor of Agora Financial, and Andrijana Djokic, the CEO of the Na-Cho Nyak Dün Development Corp., will moderate the Yukon’s forum mid-morning.

There will be a fourth forum entitled “Environmental Social Governance” which will explore the future of mining in the changing environmental landscape.

In a press release issued this morning, Premier Sandy Silver expressed optimism for the conference’s potential for attracting mining investment Northward.

“Yukon is a great place to invest,” Silver said.

“This strategic initiative will raise the investment profile of Canada’s North on the global stage and advance our mineral industry.”

Anne Turner, the Yukon Mining Alliance’s executive director, said the conference will bring attention to the territory’s undiscovered resources.

“Invest Canada North will connect global investors with the significant untapped mineral potential, strong geopolitical stability and progressive Indigenous and community partnerships found in Canada’s North,” Turner said.

The Prospectors and Developers Association of Canada Convention will take place March 1-4.

Last year, the Toronto conference attracted 25,000 attendees from 132 countries.

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London Community Foundation tackling lack of housing with $20-million investment – Global News

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The London Community Foundation (LCF) is committing up to $20 million to addressing London’s affordable housing crisis.

The funds will be used to create a dedicated affordable housing fund of $17 million to $20 million to support the creation of more affordable housing options in the city.

“Adequate, safe and affordable housing should not be out of reach,” said LCF president and CEO Martha Powell.

“The shortage of affordable housing in our community is at a crisis point.”

London currently has a housing shortage of 3,000 units and more than 2,400 individuals and families accessing emergency shelters each year.

The fund is designed to offer flexible financing for community organizations interested in creating affordable housing.


READ MORE:
London is rethinking how it addresses homelessness and housing instability

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According to the LCF, a major barrier to entering the affordable housing market is the high startup costs.

LCF is proposing low-interest, early-stage, flexible financing to help groups with initial startup costs like fund assessments, land acquisition, and planning and zoning expenses needed before the first phase of a project can be completed.

This idea builds upon the concept of LCF’s $10-million Social Impact Fund, which has helped to create 341 units of affordable housing.

In addition to the $20-million fund, the foundation announced the establishment of a Housing Action Committee, which will identify organizations that have an interest and capacity to help create affordable housing but who need more information and financial assistance to develop their plans.

“We hope to help those already providing housing solutions and those who may be able to help,” said committee chair John Nicholas.

© 2020 Global News, a division of Corus Entertainment Inc.

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Kate Middleton and Prince William host glamorous reception for UK-Africa Investment Summit

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William a speech at the event in which he spoke about the important relationship between the UK and Africa.

“The African continent holds a very special place in my heart,” the Duke of Cambridge said in a speech after arriving in the Music Room for the event. “It is the place my father took my brother and me shortly after our mother died.

“And when deciding where best to propose to Catherine I could think of no more fitting place than Kenya to get down on one knee.

“Throughout my life, I have been lucky enough to spend time in many other parts of Africa. I’m also honoured to be the Patron of the Royal African Society.

“And as Catherine and I have said to several of you here tonight, we hope to have the chance to visit many more countries in the future and share our mutual love of your continent with our children.”

Photo: © Yui Mok/AFP via Getty Images

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