GOLD- the only true currency?

adambro

Stavros wrote: »

Now although his statement was 3 years ago, I'm more inclined to listen to this guy than some of the 'There's gold in them thar hills' prospectors on this website.

Buffett has a net work of $60 billion. I'm also inclined to listen to his views.

cloud_dog

Stavros wrote: »

Now although his statement was 3 years ago, I'm more inclined to listen to this guy than some of the 'There's gold in them thar hills' prospectors on this website.

Absolutely, after all I'm sure we would have all rather followed the sage over the last three years and accepted an 8.5% loss on our investment over three years, rather than almost doubling our investment over that time period.

Oh, but I forgot all those received dividends, yes, thats it, now I feel better

Not sure why gold discussions have to be an argument. It has a value (like it or not, it just does), it goes up in price, you can make money out of it, it goes down in price, and you can lose money in it.

Whats' the problem

Edit: 8.5% loss relates to Berkshire Hathaway Inc performance.

Stavros_3

The point I was making was, I'd rather read and listen to one of the world's most shrewdest investor's of the last century, than some of the ill-informed Klondike Pete's that are continually punting gold week in and week out with absolutely no other conversation.

cloud_dog

Stavros wrote: »

The point I was making was, I'd rather read and listen to one of the world's most shrewdest investor's of the last century, than some of the ill-informed Klondike Pete's that are continually punting gold week in and week out with absolutely no other conversation.

Yes, but.............Asherton hasn't been around on this thread. :rolleyes:

No, seriously I didn't think this particular thread had had any (?) 'buy, buy, buy' posts?

Lol_UK_2

adambro wrote: »

Buffett has a net work of $60 billion. I'm also inclined to listen to his views.

Yeah well...lots of people made fortunes in the booms we've had (Ex Head of RBS has 650k pension despite RBS going down the toilet).

I'd be interested to know where he will put his money now!
Buffet currently seems to agree with the US bailout package, which I find worrying. I happen to agree with Peter Schiff that the bailouts are going to make things worse...just like the stimulus packages that were the precursor to The Great Depression!

To quote him' be greedy when others are fearful'...so from the reaction on these forums, now seems the best time to buy the yellow metal!!

jon3001

Stavros wrote: »

Warren_Buffett_in_2005 wrote:

Buffett: Gold is way down on my list, I would rather own assets that produce value. Dow went from 66 to 12000 and paid dividends. If you owned Gold you paid 20 and went to 400 a hundred years later, and you paid insurance and storage costs. It's really not a store of value. Farm, apartment, businesses have utility. I'd rather be able to sell someone candy in 20 years than holding gold. I see no reason why it will work well in the future.

Muffett: Gold was great if you were a well-to-do Jewish [person trying to save the] value [of your assets] in Austria in 1935. But for us, it has none.

Now although his statement was 3 years ago, I'm more inclined to listen to this guy than some of the 'There's gold in them thar hills' prospectors on this website.

This is from the guy who bought nearly 130 million ounces of silver bullion?

mrposhman

Lol_UK wrote: »

Yeah well...lots of people made fortunes in the booms we've had (Ex Head of RBS has 650k pension despite RBS going down the toilet).

I'd be interested to know where he will put his money now!
Buffet currently seems to agree with the US bailout package, which I find worrying. I happen to agree with Peter Schiff that the bailouts are going to make things worse...just like the stimulus packages that were the precursor to The Great Depression!

To quote him' be greedy when others are fearful'...so from the reaction on these forums, now seems the best time to buy the yellow metal!!

he's started to invest in equities actually.

I think you'll find that the statement buffet uses is probably not so suited to gold at the moment as I doubt all are being fearful. Probably somewhere in the middle.

Look at it from an RBS view, when it hit 10p what were most being being? Fearful or greedy?

If you bought then what would you be now??

Answer - a damn site richer

mike22

Lol_UK wrote: »

GOLD- the only true currency?

No. Of course not. In fact, you put your money into gold for mid- long-term investment, so you cannot say it's currency.

Unless, you lucked out in short terms. Like what most of us did during the last period - bought gold and sold it with small profit.

I would say hold on, do not try to repeat this short-term investment, because you , and no one, knows or can expect how the price will go up or down.

I am waiting now for the gold price to settle down, and this may take few months. It's too risky for me to buy gold again in the near future.

Blah99

Commentary on this in the current IC, and online:
http://www.investorschronicle.co.uk/Columnists/GuestColumnists/article/20090216/acfc988e-fc17-11dd-ac57-00144f2af8e8/Dont-gamble-on-gold.jsp

Positive:

''On the demand side, the rising wealth of emerging economies is likely to support jewellery demand, while ongoing financial turmoil and inflationary pressures will continue to stimulate investment demand. So current trends in these fundamentals are extremely supportive for the price to trend higher."

Negative:

Here is something to sober you up. Alan !!!!!!, chartered financial planner at Forty Two Financial Planning says: "I don't believe gold should be held, period. It is a speculation, not an investment. Gold generates no income so the returns are purely from speculative price movements. This is more akin to gambling than investing and most individuals will end up getting badly burned."

Nic Round, managing director of Murray Round Wealth Management, has similar views. He says: "Investing in gold is saying that you can't cope with an economy that is paper-based - that you can't trust anyone. "You can give yourselves reasons to say it's a good idea to buy - but the real issue is how long you're going to keep it, when are you going to sell it and at what criteria? If you don't know, then what are you doing buying? You've bought it through emotion."

sabretoothtigger

Someone investing the size of buffets portfolio cant afford to ride with speculation like we all do, being right or wrong on the fundamentals probably really counts at that level.