Warren Buffett has compared gold to farmland in by first stating that - "Today the world's gold stock is about 170,000 metric tons. If all of this gold were melded together, it would form a cube of about 68 feet per side." He then compares that to all U.S. farmland - "A century from now the 400 million acres of farmland will have produced staggering amounts of corn, wheat, cotton, and other crops - and will continue to produce that valuable bounty" But notice that he get's you to imagine all the gold "melded together" as a cube sitting somewhere such as the Simpson Desert. If we instead imagine all U.S. farmland 'melded together' forming a dirt cube 67 miles on each side sitting in the Simpson Desert and then compare that to the functional value of all the gold in the world being traded as a form of honest money and the staggering benefits of valuing money fairly and honesty over the next hundred years. I believe I know which one he would now say is more valuable, his argument was very cunning by saying 'melding together' only gold and not farmland he tricked people into thinking gold was worthless. 'Buffett On Farmland And Exxon Mobil Vs Gold' http://seekingalpha.com/instablog/6...1-buffett-on-farmland-and-exxon-mobil-vs-gold
The guy kinda has a point... you can't eat your gold. I would love to have my own farmland. To be able to be self-sufficient and have a life off the grid = wealth.
It is for the most part, gold price is pretty much based on look at the shiny shiny psychology, certainly not it's use, a farm on the other hand feeds us. Admittedly how we currently produce food is an issue as soil ain't soil when most agriculture is fossil fuel based so the equation there is tad biased as that 400 million acres doesn't produce the same amount due to our love of grains/meat as it takes once fertile land and turns it into desert but due to the inputs as long as there is enough water nothing else matters (currently). Gold, silver , currency - intrinsic value?? As the Cranberries once said it's in your head as we love to place value on the valueless it's all just a means of control for us zombies [youtube]http://www.youtube.com/watch?v=6Ejga4kJUts[/youtube] She's gold
It's a ridiculous comparison for simpletons. Gold is not an investment and thinking of it as such is what drives people into expecting to da' moon capital gains. Berkshire Hathaway (and in fact any producing business) has minimal use for gold in its business accounts just like they have minimal use for fiat cash. If my local supermarket or farm business was stacking more and more gold on their books then they're probably morons. Savings and insurance are not investments.
Gold is in use, useless....if I was using it to grow plants! Its intent was and is to store wealth. so when I fixed ur chuckwagon, or was a vet to your horse you would pay me, but maybe your harvest was not quite ready... so we all needed an form of exchange that was fair/same for everyone. an oz is a oz, a 1/4 is a 1/4 no adding or copying. in if gold is a crappy investment or useless...well so is everything else.....yes please id like to exchange my hard working dollars for some random a$$ numbers in a computer..... which is a pyramid scheme if u ask me. so ur company turned a profit and prevailed, and ur gonna give it to us millions of players/share holders.. if greed doesn't kick in first? no id like gold.. a form of exchange please. (JMO)
Overvalued farmland won't be able to produce enough commodities to service the loan you took out to buy said land in the first place... QED overvalued farmland is just as risky as overvalued gold. or overvalued anything.
Farmland to produce, gold to facilitate trade. ....... Guns to drive the corperate scum off the farmland
Uh Oh. The G word. In before the lock. Remember their campaign contributions can potentially hire a lot of government g-words.
