WARREN BUFFETT Quote : Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
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Saturday, May 12, 2012

Warren Buffett - Gold and Paper Money

Warren Buffett - Gold and Paper Money

7 May 2012 CNBC
[It's a huge question people have asked us, this huge run up in Gold over 4 years. 'Civilized people don't buy Gold!'

Bill Gates - Historically I did have Silver investments. But Gold is so psychological. Countries need liquidity, here is an asset which is not doing anything for the citizen, people don't suddenly buy 4 times more jewelery. It's just purely other people in the future think it's worth more than it's worth today. People panic. The supply equation will change. The bulls will have to adjust to innovation.


Warren Buffet -
"Gold has gone and Berkshire hasn't gone up by as much. If you buy an ounce of gold you can carress it and fondle it, a hundred years from now you will still have an ounce of Gold. If you buy farmland it will produce for 100 years and you will still have the farmland. You can buy the Dow Jones, at the end you have dividends for 100 years. So a productive asset is going to kill a non-productive asset. But any asset can outperform any other asset [Beautiful - he knows the inherent contradiction that is both for and against Gold]

Incidentally THEY ARE RIGHT TO BE AFRAID OF PAPER MONEY. If they run from it that is a mistake....but it is a correct premise" [Amazing]

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