“…and obviously, we wouldn't want to be owning anything that we thought was in a currency that was really going to hell. And that's the big thing we worry about with the United States currency. I mean it’s the tendency of a government to want to debase its currency over time. There's no system that beats that.”
– Warren Buffett
Dear Golden Opportunity reader,
Buffett made some bold statements about the real story behind gold’s rise, and the state in which he believes the USD currently finds itself…
I created the Golden Portfolio system as the ultimate solution to beat monetary debasement.
Better than physical Gold, and Gold stock ETF’s, my GP portfolios contain deeply undervalued Gold stocks that simply need to execute to drive value regardless of the Gold price. A rising Gold price is simply the “cherry on top” of the entire shareholder value creation process.
Gold stocks have been ignored for decades, and right now they’ve never been cheaper. Now, for the 1st time ever we’ve seen the USD and bonds sell off along with stocks. This hasn’t happened in over 50 years. It’s truly the end run for the USD, and its $37 trillion debt, and Mr. Buffett knows it.
On May 5 2025, at the most recent Berkshire Hathaway shareholder meeting, Buffett painted a bleak picture for the US dollar, he stated:
“I mentioned very briefly in the annual report that fiscal policy is what scares me in the United States because of the way it’s made, and all the motivations are toward doing things that can cause trouble with money. But that’s not limited to the United States – it’s all over the world, and in some places, it gets out of control regularly. They devalue at rates that are breathtaking, and that’s continued.
People can study economics and you can have all kinds of arrangements, but in the end, if you’ve got people who control the currency, you can issue paper money or engage in clipping currencies like they used to centuries ago. There will always be people who, by the nature of their job – I’m not singling them out as particularly evil – but the natural course of government is to make the currency worthless over time.“
If that’s not a green light for precious
metals investors, I don’t know what would be.
Warren Buffett has been no fan of gold.
He’s been famously critical of the metal, essentially saying it’s not very useful.
He once said:
"I will say this about gold. If you took all the gold in the world, it would roughly make a cube 67 feet on a side…Now for that same cube of gold, it would be worth at today’s market prices about $7 trillion—that’s probably about a third of the value of all the stocks in the United States.
For $7 trillion…you could have all the farmland in the United States, you could have about seven Exxon Mobil (XOM), and you could have a trillion dollars of walking-around money.
And if you offered me the choice of looking at some 67-foot cube of gold and looking at it all day, and you know me touching it and fondling it occasionally…call me crazy, but I’ll take the farmland and the Exxon Mobil."
That’s all true, but Buffett is being a little bit disingenuous here…
He’s comparing a physical commodity to securities and productive farmland. But they’re all different assets.
Sometimes you have to pay attention more to what someone does, because Buffett is no stranger to owning physical precious metals.
In 1997, he bought nearly 3,500 tonnes of physical silver at a price between $4-$6/oz. He sold this silver in 2006 between $9-$13/oz – an easy 100%+ gain – earning Berkshire Hathaway ~$650 million in less than 10 years.
Buffett also bought Barrick Gold (NYSE: GOLD) in 2020. I believe he’s coming for Newmont Mining (NYSE: NEM) now. Newmont is gushing cash and is trading at a deep 35% discount to profit based fair value.
In 2024 alone Newmont paid out $1,145 mil dividends, bought back $3,860 mil debt, and repurchased $1,246 mil shares. So far this year Newmont has paid $282 mil dividends, bought back $985 mil debt and repurchased $348 mil shares. Annualized, this is $6,460 mil in value creation equal to a massive 10% shareholder yield.
When Buffettt comes, and Newmont rises, my Golden Portfolio IV (more below) contains 5 smaller Gold Miners and developers that will soar multiples higher.
When the world’s greatest living investor warns you about the devaluation of global currencies, you should take note. He’s not just talking his book. At this point, he’s retiring and he’s in his early 90s.
If you agree with Buffett that central bankers are doomed to continually and drastically devalue their currencies, then you only have one rational move as an investor.
I created the Golden Portfolio as your ultimate Gold investment. My Golden Portfolio IV contains 5 of my top Gold Stocks. GPIV’s performance is unsurpassed, up 287% since the end of 2023.
My GPIV portfolio has done great, but there is much more to come.
GPIV stocks represent the best projects the Gold industry has to offer, world class assets trading at massive discounts to FCF profit based fair value. The rising price of Gold has driven significant value into the underlying assets of these companies and the stock prices have yet to catch up. GPIV holdings are still deeply undervalued, one still trades for an extreme discount of 97%. Get onboard now while there are still bargains to be had before the masses come.
Best,
Garrett Goggin, CFA, CMT
Chief Analyst and Founder, Golden Portfolio