While everyone talks about Warren Buffett's pivot into the gold space, it appears that gold isn't the only metal the oracle wants exposure to.
This morning it was reported that Buffett has acquired a 5% stake in each of the five leading Japanese trading companies.
Berkshire says it intends to hold the investments for the long term, and that it may increase its holdings in any of the companies up to a maximum of 9.9%.
The companies are Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp.
Sumitomo provides Buffett with more precious metals exposure.
Itochu and Marubeni are significant players in the uranium space.
Years ago I wrote that pension funds, insurance companies, and generalist funds that have traditionally shied away from gold - either because of preference or mandate - would be forced to pivot ala Mr. Buffett in an attempt to chase better returns.
That day has arrived.
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Ohio's Police and Fire Pension Fund has approved a 5% allocation to gold in an effort to help diversify the fund's portfolio and to hedge against, you guessed it, inflation.
The kind of inflation that the Fed has doubled down on stoking.
The FOMO hasn't hit with the generalists in the gold space. It will and will likely happen just as the retail crowd starts piling in.
Don't get me started on the Robinhood traders.
Can you imagine what it will look like when the gold allocation is outperforming every other part of the Ohio Police and Fire Pension Fund portfolio?
What will bankrupt states like Illinois, who at this point have little to lose (literally), do when they see Ohio's pension fund doing better because of gold's performance?
We have the perfect macro setup for a historic gold run.
On the micro front, several of my favorite juniors have kicked off what I'm calling "Discovery Season".
There will be two types of juniors this fall. Those that execute and continue higher and those whose share prices surged on the hype only to find out it was a round trip.
It's the perfect setup at the perfect time but only if you know what to buy.
To your wealth,
Gerardo Del RealEditor, Junior Mining Monthly and Junior Mining Trader.
For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Outsider Club, Junior Mining Monthly, and Junior Mining Trader. For more about Gerardo, check out his editor page.