Buffett on Gold

M

Matthew 26:14

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Warren Buffet on CNBC today:-

Buffett on Gold

After repeating his regular argument that gold is an unproductive asset that will be outperformed by stocks, or even farmland, over the long run, Buffett does acknowledge that gold fans are "right" to be afraid of paper money.

They have a "correct basic premise" that paper money will be worth less in coming years.

He disagrees with them on the strategy of buying gold to avoid that decline in value. "Where they run from that, and they should run from it, is, in my view, where they make their mistake."

Buffett also notes that many gold buyers are emotional about the metal, and want other people to agree with them since more buying boosts its price.

"They want everybody to be so scared they run to a cave with gold. Caves might be a better investment than gold. At least they're not producing new caves all the time."
 
"Ok. Look. You're right. But not for the reasons you should be right. Besides it's only scared people who buy gold. But you should be scared but don't get emotional about it. Just collect a fair bit, because the paper currencies are, well, they're stuffed. They might look like they're alive, but they're stuffed. These central bank guys keep jiggling them about and shocking them and yelling 'clear' so people think they're alive, but they're stuffed. So be afraid and collect gold for reasons other than the ones you're collecting gold for. OK. There I said it. Now can I have my tablets."

My grandfather got a bit like that towards the end too.
 
Buffet's case against gold is a little weak/weird, I would have thought someone as 'wise' as the sage of Omaha would have a stronger argument than that.. hi ho;

it could equally be argued that Art, fine wines, stamps, classic cars etc don't do anything either, but they seem to appreciate in value (unless it's a car I've bought, in which case ...)

How many pundits appear on TV, Bloomberg etc, ramping a particular company to push the share price higher, e.g. Apple to go to $1000 when it was $638, now it's $550'ish

He does appear to be a two-trick pony.. shares and farmland.
 
Forget gold. It is merely a lump of useless metal that no-one needs. The intelligent 21st century person knows that anachronisms like gold rightly belong in the last 3000 years. The modern, safe way to store the wealth that they have earned from working tens of thousands of hours at their jobs is to have a collection of digits on a hard drive on a bank server that are fully redeemable for pieces of paper or plastic with drawings of dead people on them.
 
Aengrod said:
I dont give a flying f**k what he is saying.
Click to expand...

Me too. If I did though it would be to take note of what he says to do the exact opposite.
 
There's no doubt that the old coot has done well over the years. But I bet my stack that this ole fart has a few bars kicking around.

It was he who back in the early 2000's bought umpteen tonnes of silver when it was cira $4 an oz. If silver like gold has no function as he argues, why'd he load up on the Ag ???
 
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