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News Link • Gold and Silver

Warren Buffett Scorns Gold. Bad Move!

•, By Addison Wiggin

Warren Buffett doesn’t like gold. In this year’s annual letter to Berkshire Hathaway shareholders, Warren Buffett scorned gold as an asset that is “forever unproductive.”

And he’s right about that…

But investors don’t buy gold because they hope it will produce something. They buy gold because they know that no one can produce it. Therefore, the more that folks distrust their national currency, the more they put their trust in the ultimate currency: gold.

The gold price has increased for 11 consecutive years — a time frame during which, coincidentally, it has trounced the investment return of Berkshire Hathaway. Why? Because a new era of monetary destruction is unfolding throughout the Western world.

2 Comments in Response to

Comment by Norm Nipperus
Entered on:

Talking about forever unproductive, the same distorted argument can be made about insurance. Does this mean Buffet is going to close down his cash cow GEICO ( Government Employees Insurance Comapny)?

As for China buying gold instead of worthless treasury notes, our empire-building politicans could soon be learning a painful lesson in humility.

Comment by Powell Gammill
Entered on:

Buffett is correct. Gold just sits there and won't truly appreciate.   But it doesn't decline --unlike paper currencies--either.  It holds its value. 

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