Europe’s plan to raise billions each year for coronavirus relief by charging ships for their pollution could inflame trade tensions at the worst moment for the global economy and set back efforts to tackle the climate crisis. San Antonio police are on scene investigating a reported shooting at a South Side flea market. Ironically, a Securities and Exchange Commission rule promulgated two decades ago to prevent insider trading suggests suspiciously timed options awarded to Kodak executives may make it difficult to pursue insider trading charges. The coronavirus pandemic has brought countries to a standstill. In many places, as countries reopen, Covid-19 cases are on the rise. Follow here for the latest. San Antonio fire chief Russell Johnson said maybe 100 shots were fired into the crowded parking area of Mission Open Air Market. Kitco News’ general-interest stories takes a look at what is making headlines in the marketplace and how that is impacting precious metals prices
London (CNN Business)Europe’s plan to raise billions each year for coronavirus relief by charging ships for their pollution could inflame trade tensions at the worst moment for the global economy and set back efforts to tackle the climate crisis.
The European Commission is proposing to extend its Emissions Trading System (ETS) to shipping as one of a series of measures to help pay for rebuilding the EU economy, and to promote a green recovery from the crisis.
The European Union plans to spend 30% of its €750 billion ($889 billion) coronavirus recovery fund and next seven-year EU budget on climate-related projects in a bid to become the first carbon-neutral continent.
But the proposed shipping tax has run into fierce opposition from the industry, which says it would undermine efforts to tackle climate change at a global level and is likely to spark a backlash from non-EU countries, raising the specter of new trade disputes.
The ETS already caps greenhouse gas emissions from more than 11,000 power and manufacturing plants, as well as all internal EU flights, covering some 500 airlines. Together, the activities it covers generate nearly half the bloc’s greenhouse gas emissions. Companies receive or buy emission permits or “allowances,” which can subsequently be traded. The number is reduced over time so that emissions fall.
The Chamber of Shipping of America told CNN Business that it is urging all non-EU governments to oppose the extension to shipping and “recognize the pre-eminence” of the International Maritime Organization, a UN body, in tackling emissions from ships.
Ships carry 80% of world goods trade by volume, according to the United Nations Conference on Trade and Development. Any increase in costs from pollution charges could be passed on by operators to businesses and consumers in the form of higher prices.
Critics of the proposal say that countries outside the European Union are likely to view it as little more than a way to raise money. The European Commission has estimated that extending the ETS to the maritime sector and requiring airlines to pay more for their pollution could generate €10 billion ($11.8 billion) a year.
“This is an admission that this is not about climate whatsoever, it’s about raising funds,” said Lars Robert Pedersen, deputy secretary general of international shipping association BIMCO, which is headquartered in Copenhagen.
The proposal amounts to asking US and Chinese shipping companies to help finance Europe’s recovery plan, Pedersen told CNN Business. He said it is likely to face staunch opposition, of the kind experienced when the European Union tried to include international aviation in the ETS in 2012.
EU officials eventually relented, after the United States threatened to ban its carriers from complying with the directive and China threatened to withhold outstanding plane orders from Airbus (EADSF). As a result, the ETS only covers flights between EU countries, as well as Iceland, Liechtenstein and Norway.
Putting a price on carbon
EU member states generated €14 billion ($16.6 billion) from auctioning ETS allowances in 2018, according to the European Commission’s carbon market report — double the revenue collected the prior year due to the higher price of the permits. Nearly 70% of that money was spent on “climate and energy-related purposes,” the report said. Emissions from factories and power stations have fallen by a third since the ETS launched in 2005, largely as coal was replaced by renewable energy sources.
In a statement to CNN Business, the Commission explained why it wants to extend the ETS to the maritime sector and reduce the allowances allocated for free to airlines. “Transport accounts for a quarter of the EU’s greenhouse gas emissions, and to achieve our climate neutrality goals, a 90% reduction in transport emissions is needed by 2050,” a Commission spokesperson said.
“This will be coordinated with action at global level, notably at the International Civil Aviation Organisation and the International Maritime Organisation.”
Transport & Environment, a European climate lobby group, has backed the move. “Shipping’s carbon pollution has grown at an alarming rate and could rise by [50%] by 2050 if real action is not taken,” shipping program manager Faïg Abbasov said in a statement earlier this month, noting that container shipping line MSC emitted more carbon last year than Europe’s biggest airline, Ryanair (RYAAY).
“Extending emission trading to the shipping sector and increasing carbon pricing for international aviation is long overdue,” added Climate Action Network Europe’s Klaus Röhrig.
But the ETS extension is by no means a done deal. While the European Parliament’s environment committee last month voted to include international carbon emissions from ships in the ETS, the final shape of the legislation will need to be approved by Parliament and EU leaders, which is not expected to happen before next year.
Trade blocks ahead?
Shipping industry players worry that the proposal, if adopted, risks undermining further progress on reducing shipping emissions through the International Maritime Organization and leading to a proliferation of regional and national measures to address pollution.
The International Maritime Organization has begun putting in place mandatory measures to cut annual greenhouse gas emissions from international shipping in half by 2050, compared with their level in 2008. Separately, at the beginning of this year it introduced new limits on the sulfur content of fuel oil, known as “IMO 2020,” which should reduce overall sulfur oxide emissions from ships by 77%.
If countries begin setting their own laws on shipping emissions it would “create a patchwork quilt of regulations globally, introducing barriers to the smooth operation of ships on international voyages and so to international trade,” wrote Edmund Hughes, the former head of energy efficiency at the International Maritime Organization, in a July report seen by CNN Business.
It also opens the door for other countries and regions to tax ships coming into their ports in the name of climate change, creating a “nightmare” scenario for global trade, said BIMCO’s Pedersen.
There is a further risk. It could ratchet up political tension with non-EU countries, potentially leading to trade disputes, added Hughes, who prepared the report in an independent capacity for the International Chamber of Shipping and the European Community Shipowners’ Association.
The United States and Europe are already locked in a costly trade dispute over aircraft subsidies to Airbus (EADSF) and Boeing (BA), with Washington resorting to tariffs on billions of dollars worth of EU goods. In another dispute, Brussels has responded to US tariffs on steel and aluminum with retaliatory taxes on US products.
Shipping companies, meanwhile, have also sounded the alarm. German shipping giant, Hapag-Lloyd (HPGLY), told CNN Business that the EU proposal targets just “a fraction” of global emissions and would divert funds that would otherwise go towards improving the energy efficiency of ships. “We should support pursuing global solutions only,” it added.
French firm CMA CGM echoed this view, saying in a statement that a global approach driven by the International Maritime Organization would “ensure equal treatment for all shipping lines in the world.”
“A scheme that does not benefit climate action in the industry would be counter productive to [the stated] objective [of the EU ETS],” added Maersk (AMKBF)’s head of regulatory affairs, Simon Bergulf.
A spokesperson for the International Maritime Organization said it urges member states to bring proposals for emissions reductions to the body for “discussion, development and potential adoption on a global basis.”
Author: Hanna Ziady, CNN Business
Five people shot at South Side flea market, San Antonio police chief says
SAN ANTONIO – Five people were shot, one of which is in critical condition, after a shooting at a South Side flea market, according to San Antonio Police Chief William McManus.
The shooting happened around 11 a.m. Sunday at the Mission Open Air Market.
According to police, an unknown type of dispute led up to the shooting. McManus said multiple shooters were involved, one of which was a security guard who returned fire at a shooter.
Five people were injured, including one of the suspects, according to McManus. He said the alleged suspect is in critical condition.
“We don’t believe, at this point, that any of the people who were shot were innocent bystanders,” he said.
The area is deemed safe by police, but McManus said it’s unknown if the primary shooter is in custody as of yet.
“Everything in the neighborhood is safe. I don’t know if we have the primary shooter or not,” McManus said.
Two weapons have been recovered and the section where the shooting happened in the flea market is currently closed.
Multiple crime scenes are set up in that section, McManus said.
The information so far is preliminary, as the investigation is still in its early stages, and is subject to change.
This is a developing story and we’ll bring more details as they become available.
A shooting investigation is currently underway at a South Side flea market, according to San Antonio police.
As of around noon on Sunday, several police officers were called to the Mission of Open Air flea market, located on Moursund Blvd, near Loop 410. Traffic is currently backed up in the area.
No details have yet been released on the incident; however, police are expected to provide details shortly.
This is a developing story and we’ll bring more updates as they become available.
RELATED: SAPD: 11-year-old girl dies from injuries after shooting on Northeast Side
Copyright 2020 by KSAT – All rights reserved.
Cody King is a digital journalist for KSAT 12. She previously worked for NewsChannel 20 in Springfield, Illinois.
Ivan Herrera has worked as a journalist in San Antonio for four years. Using his graduate degree in business from UTSA, he developed “Money: It’s Personal,” a weekly series that airs on GMSA at 9 on Tuesdays. The series breaks down personal finance topics into easy explainers. Before living in SA, Ivan covered border news in the Rio Grande Valley.
Author: Cody King, Ivan Herrera
How A PR Error Might Absolve Kodak Of Insider Trading Charges
Corbis via Getty Images
If you’re not familiar with the details on what happened with Kodak stock in the last few weeks, you can catch up here and here. In a nutshell, though, this is what you need to know for the purposes of this article:
On Tuesday, July 28th, the Trump administration, in a move similar to the ones it made with other venerable American companies (Ford and GM), announced it was asking Kodak to devote some of its vast underutilized capacity to begin the manufacture of advanced pharmaceutical ingredients. In exchange, the government promised to award the former photography giant a loan of $765 million.
This action was heralded with bipartisan support. No less a Trump critic than New York State Governor Andrew Cuomo lauded the move, saying, “Never again do we want to rely on shipments from China or elsewhere in order to get lifesaving medical supplies.”
But the applause did not last long, as it soon fell victim to partisan criticism.
Politics aside, and perhaps fueling this criticism, a series of suspiciously coincidental transactions occurred a day before the White House announcement.
On Monday, July 27th, a day when Kodak stock “rocketed” up 25% to close the day at $2.62 per share, Kodak executives received stock options. James Continenza, CEO of Kodak, received roughly 1.75 million stock options with exercise prices of $3.03, $4,53, $6,03 and $12, according to an SEC filing. This is nearly triple the 650,000 shares he had already owned. Those shares were awarded to Continenza in five different tranches since August of 2019.
It is the timing of these options which has become the focus of a Securities and Exchange Commission (“SEC”) investigation for possible insider trading. Senator Elizabeth Warren (D-Mass.) asked the SEC in an open letter to examine these transactions citing “insider trading” and “unauthorized disclosure of material, nonpublic information.” As a result, the Kodak loan has been placed on hold pending the results of the investigation.
But that’s not all that happened on Monday, July 27th. At some point, Kodak issued a press release detailing its receipt of the government loan. Two Rochester, N.Y.-based major network affiliates ran the story. In addition, the story was placed on Twitter.
Kodak said it made the mistake of not placing an “embargo” on the press release. An embargo prohibits the media from broadcasting the contents of a press release until a specified time. Without the embargo, journalists were quick to report the news, not wanting to be scooped by a rival.
The news apparently impacted trading, as Kodak stock, long languishing a little over two dollars a share, shot up 25% on heavier than normal volume.
That PR error, however, may make it difficult for the SEC to prove insider trading with regards to the options issued on July 27th. Ironically, this is because of a rule the SEC put in place two decades ago to thwart insider trading.
It’s called Regulation FD (“Reg FD”) and it was promulgated by the SEC in 2000 to limit the practice of “selective disclosure,” which gave (generally larger) traders advantages over other investors. Prior to Reg FD, insider trading laws failed to adequate identify where and when the line of “insider trading” was crossed.
“As an overarching matter,” says David Oliwenstein, until recently Senior Counsel at the SEC, Division of Enforcement, Market Abuse Unit (the unit responsible for insider trading enforcement), and presently Counsel at Pillsbury Winthrop Shaw Pittman LLP in New York City, “U.S. insider trading laws were (and remain, in certain respects) insufficient because insider trading is governed by the general antifraud prohibition of the Exchange Act—there is no specific insider trading statute. This leads to confusion among market participants regarding the scope of permissible trading as well as gaps in the applicability of insider trading laws to certain conduct.”
The purpose of Reg FD was to make it clearer what precise actions need to occur before traders could act on material information once it was made public.
“Reg FD is designed to prohibit selective disclosure to the public (often to favored analysts),” says John (Jack) Sylvia; Co-chair, Securities Litigation Practice at Mintz Levin in Boston. “The purpose is to prevent favored parties from obtaining a trading advantage even where the executive may have been authorized to make the selective disclosure, thus making it difficult to charge the traders with insider trading (i.e., no breach of a duty or misappropriation of information).”
More proactively, Reg FD not only guides how material information should be disclosed, it also mandates when it should be disclosed.
“One of those gaps that existed in the 1990s is that issuers would selectively disclose confidential information to certain analysts and institutional investors, who would then profitably trade on that information,” says Oliwenstein. “In response to this gap, the SEC adopted Regulation FD to promote full and fair disclosure. The crux of Regulation FD is that once a public company shares confidential information with certain individuals specified in the rule, that company must immediately disclose that information publicly (the rule also applies to accidental disclosures).”
It’s here where the word “accidental” becomes relevant. It then is a matter of the timing of events as to whether “insider trading” may exist (and places the relative burden of proof upon the SEC).
“From an insider trading standpoint—assuming the options were issued and exercised after news reports—I think it’s unlikely that the SEC would pursue insider trading charges here,” says Kurt Wolfe, an attorney with Troutman Pepper based out of the national law firm’s Richmond, Virginia and Washington DC offices. “The material information was known to the market, and seems to have moved the price.”
It may be, then, that the nuances of Reg FD, though triggered by Kodak’s failure to place an embargo on its press release, may provide a significant obstacle in the SEC’s investigation.
“If the reports were published via a public disclosure under Reg FD, then it may not be a violation,” says Braden Perry, a former federal enforcement attorney and CCO of a financial firm, who is presently a regulatory and government investigations attorney with Kansas City-based Kennyhertz Perry, LLC. “A public disclosure in this case is dissemination by a method or combination of methods reasonably designed to provide broad, non-exclusionary distribution.”
On the other hand, Kodak’s attempt to “right the wrong” of the premature release of the information regarding the loan may jeopardize its Reg FD defense.
“There is a question as to whether Regulation FD was satisfied regardless of whether the information was nonpublic for insider trading purposes,” says Oliwenstein. “The ‘reasonably designed to provide broad, non-exclusionary distribution’ standard requires that information be disseminated widely and potentially through various mechanisms designed to reach a broad population. The SEC could credibly take the position that publication by two local news sources is insufficient, even with the discussions in national chatrooms. If that is correct, the SEC would expect Kodak to treat the early dissemination of the news as an accidental disclosure and promptly disclose it in a manner ‘reasonably designed to provide broad, non-exclusionary distribution.’ Instead, the company seems to have done the opposite and asked the reporters to remove the information. The SEC might see this as a Regulation FD violation.”
Even if Reg FD proves to be irrelevant, there are other circumstances under which the issuance of the options would not rise to an act of insider trading. The fact that Kodak’s CEO had been granted options frequently in the last twelve months, and certainly before Kodak began negotiations with the government, would suggest a pattern of behavior.
“One scenario in which the options trading would be unlikely to constitute insider trading is if the transactions were made pursuant to a so-called Rule 10b5-1 plan, which is essentially a trading program that removes all discretion from the officer or director,” says Oliwenstein. “A few caveats on 10b-5-1 plans are that in order to provide a defense to an insider trading allegation, a 10b5-1 plan must be bona fide and adhered to faithfully. Once implemented, the plan must be left to operate without interference (and, of course, it must be created at a time when the insiders are not in possession of material nonpublic information). Under these circumstances, transactions entered into should not form the basis of insider trading liability even if they occurred at a time when the executives clearly had access to material, nonpublic information. If Kodak or its executives assert Rule 10b5-1 as a defense to the SEC, expect the staff to probe issues designed to get at the legitimacy of the plans including when the plans were created, whether the plans were amended, and, if so, how often and under what circumstances, and whether the plans were created when the company was in possession of confidential information.”
It’s not unusual for the SEC to investigation odd coincidences in trading. It is rare, however, that such investigations play out in the backdrop of a politicized environment. And if this is a mere coincidence, that’s too bad, because, unless Andrew Cuomo steps up to defend a major employer in his state, Kodak may never have the chance to produce the advanced pharmaceutical ingredients America needs to, in the words of the New York State Governor, no longer “rely on shipments from China or elsewhere in order to get lifesaving medical supplies.”
Author: Chris Carosa
August 16 coronavirus news
China’s National Health Commission reported that 22 new Covid-19 cases were identified throughout the country Sunday.
Another 37 asymptomatic cases were also recorded. China counts these cases separately.
A total of 84,849 cases of the novel coronavirus have been identified throughout China since the pandemic began.
From CNN’s Oscar Holland
The world may be in the midst of a global pandemic, but visitors to a new Beijing exhibition could be forgiven for thinking the battle has already been won.
A triumphant art show celebrating the “great spirit of the Chinese people” in fighting Covid-19 opened this month at the country’s National Museum, near Tiananmen Square in the center of Beijing.
Through a collection of almost 180 artworks, including sculptures, watercolors and dramatic oil paintings of heroic doctors, the exhibition aims to document the initial coronavirus outbreak in Wuhan and its aftermath.
But given that the country heavily censors art, the contents of the museum’s exhibition mirrors the official stance on China’s containment of Covid-19.
Through images of aid workers, the exhibition’s messaging also appears closely aligned with government narratives around the country’s international response to the crisis — or “demonstrat(ing) China’s responsibility as a major country in dealing with … a major public health emergency,” as the foreword at the show’s entrance proclaims, despite criticism of officials’ early attempts to suppress news of the virus ahead of the busy Lunar New Year holiday in January.
From CNN’s Paula Hancocks and Gawon Bae in Seoul, South Korea, and Eric Cheung in Hong Kong
United States Forces Korea (USFK) has raised its health protection level following an uptick in the number of Covid-19 infections in South Korea.
USFK raised the protection level to level “Charlie” at 5 a.m. Korean time, which indicates the presence of sustained community transmission of Covid-19 across South Korea, according to a notice posted by the US Department of Defense.
South Korea has boasted one of the world’s most successful responses to Covid-19. In a country of more than 50 million people, only 15,318 cases of Covid-19 and 305 virus-related deaths have been reported.
However, there has been a significant rise in cases throughout the country in recent days.
More than 600 new cases were reported across Friday, Saturday and Sunday, as daily infection numbers crossed the triple digit threshold for the first time since March.
As part of USFK’s new measures, only essential individuals will be required to report for duty, while others will work remotely, USFK said in a statement.
Travel outside the military installations will only be authorized for official and necessary duties, it added. All individuals are also required wear a mask outside the installations.
From CNN’s Hollie Silverman
Videos posted to social media show a large gathering at an off-campus housing area near the University of North Georgia in Dahlonega, about 65 miles north of Atlanta.
Sylvia Carson, UNG executive director of communications, told CNN in an emailed statement Sunday that the school is “aware that a large outdoor party was held at a privately-owned, off campus apartment complex located near” the Dahlonega campus Saturday night.
There are no mask mandates in the state of Georgia.
UNG requires masks at UNG buildings and facilities, but face coverings are not required in residence hall rooms or when enclosed alone in an office or study area, according to the guidance posted by UNG effective July 15.
From CNN’s Sharif Paget and journalist Karol Suarez in Mexico City
Mexico has recorded 4,448 new cases of the novel coronavirus on Sunday, taking the total number of cases in the country to 522,162.
The Health Ministry also added 214 new deaths for a total count of 56,757. Mexico continues to hold the third-highest number of deaths in the world from coronavirus following only the US and Brazil, according to Johns Hopkins University (JHU).
Mexico is now ranked third in Latin America by JHU in terms of its number of total coronavirus cases. As of Sunday, Mexico trails Peru – which has 525,803 total cases – by nearly 4,000 cases and Brazil, which has recorded more than 3.3 million infections.
From CNN’s Mohammed Tawfeeq
The Iraqi Health Ministry has warned of “disastrous consequences” if people don’t follow the rules and instructions issued by the ministry to contain the spread of coronavirus.
The country recorded its highest daily record of new Covid-19 cases on Sunday, with 4,348 new coronavirus cases and 75 deaths. The spread of coronavirus is expected to get much worse, given the country’s medical infrastructure has been damaged by decades of sanctions, war, and corruption.
The guidance includes recommendations to stay home, social distance, wear masks and wash hands regularly.
Despite the warning, Iraq’s Supreme Committee for National Health and Safety decided on Saturday to reduce daily lockdown hours, as the country is under huge economic pressure. Many low-income earners are not able to afford to stay home and out of work – or to work from home — and there have been no alternative income arrangements provided by the government.
Iraq is also preparing for a major religious commemoration this month known as Ashura, which is the anniversary of the death of Imam Hussein, grandson of the Prophet Mohammed. Ashura is considered the holiest day on the Shia Muslim calendar and Iraqi officials and religious figures have been warning citizens to avoid all gatherings during the event. Each year, hundreds of thousands converge on Karbala, about 62 miles south of Baghdad, to visit the Imam Hussein holy shrine there.
Iraq’s Supreme Committee for National Health and Safety issued a statement on Saturday calling on all Iraqis to mark the event from inside their homes and avoid marching toward Karbala.
From CNN’s Jennifer Selva
The Metro East area of Illinois — the southwestern counties of the state near the Missouri border — is facing new Covid-19 mitigation guidelines after three days in a row of a test positivity rate of 8% or higher, according to a news release from Gov. JB Pritzker. The area is also known as Region 4.
Pritzker and the Illinois Department of Public Health (IDPH) say this means that starting Tuesday, all bars, restaurants and casinos need to close by 11 p.m. local time. All party buses will be closed, and gathering sizes should be reduced to 25 people or less.
If the data shows we need to go backwards in our reopening, I won’t hesitate to tighten restrictions to protect our collective health,” Pritzker said.
After 14 days, the IDPH will reassess the rules to see whether more stringent measures such as closing indoor bars and dining is needed.
According to the IDPH, Illinois is reporting 206,081 total cases and 7,744 deaths.
From journalist Stefano Pozzebon in Bogota.
Colombia’s Health Ministry reported 11,643 new cases from Covid-19 Sunday, bringing the total number of cases in the country to 468,332.
The ministry also reported 287 new deaths, bringing the total death toll to 15,097.
Colombia’s capital, Bogotà, remains the country’s biggest hotspot with 163,295 total reported cases.
From CNN’s Hollie Silverman
More than 170,000 people with coronavirus have died in the United States as of 7:30 p.m. EST Sunday, according to the Johns Hopkins University tally.
As of Sunday night, 5,401,167 cases and 170,019 deaths have been reported nationwide.
A total of 40,002 new cases and 538 new deaths were reported Sunday.
For the latest Johns Hopkins University U.S. numbers: https://coronavirus.jhu.edu/map.html
CNN’s map, using JHU data continues to refresh every 15 mins: https://www.cnn.com/interactive/2020/health/coronavirus-us-maps-and-cases/
At least 3 injured in shooting at San Antonio flea market
At least three people were injured when shots were fired Sunday morning at a San Antonio flea market, police said. The three injured people were found in separate areas of the parking lot, police said. Shell casings were scattered throughout the crime scene and weapons can be seen on the ground and inside vehicles associated with the three injured people, police said.
San Antonio fire chief Russell Johnson told CBS affiliate KENS-TV that maybe 100 shots were fired into the crowded parking area of Mission Open Air Market.
One of the suspects is in custody and in critical condition, San Antonio police chief William McManus told KENS-TV. There are believed to be multiple shooters. Police said at least two weapons and several rounds of ammunition were recovered at the scene.
Witnesses told KENS-TV that the shooting appeared to be a conflict between vendors. Police said they did not believe any innocent bystanders were shot.
Also Sunday, three police officers were shot in an unrelated shooting in Cedar Park, Texas, a suburb of Austin, officials said. Cedar Park police tweeted the suspect was not in custody and described the scene as “very active.”
Governor Greg Abbott issued a statement on Sunday saying “our hearts are with the police officers who were injured” in the Cedar Park shooting.
Author: By Caroline Linton
Buffett’s bet on Barrick is not a sea-change in sentiment for the gold market – Bannockburn
(Kitco News) – The gold market is seeing renewed excitement as investors continue to react to the news that Warren Buffett’s Berkshire Hathaway bought nearly 21 million shares of Barrick Gold in the second quarter.
However, one market analyst is warning investors to not read too much into the move as it probably doesn’t reflect a notable transformation in sentiment from the Oracle of Omaha. In a note Monday, Marc Chandler, chief market strategist at Bannockburn Global Forex, said that “plump” margins in the mining sector is what drove the investment decision.
“Investors ought not to confuse gold mining companies with gold bullion,” he said.
Chandler also said that gold bulls should also note Berkshire Hathaway’s Barrick bet compared to its overall holdings.
“Berkshire Hathaway’s portfolio is still dominated by Apple (~44%). Barrick Gold accounts for less than 0.5%,” he said.
Although Chandler doesn’t see Buffett’s latest move as a game changer for the gold market, he remains bullish on the yellow metal as he expects the U.S. dollar to enter a long-term downtrend.
In an interview with Kitco News last month, Chandler said that a $2,000 target for gold could prove to be a conservative estimate in the near-term.
Buffett has had very opinionated views on gold as an investment.
“(Gold) gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head,” he said in 1998 in a speech at Harvard University.