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Warren Buffet says no to Purchasing Gold

Business, Economy
Warren Buffet says no to Purchasing Gold


Warren Buffett is not a fan of gold.

Buffett, the chairman and chief executive officer of Berkshire Hathaway said,   “gold ‘doesn’t do anything except look at you.’”

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In the past he stated, “gold gets dug out of the ground in Africa, or some place. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”

The billionaire investor said he prefers investment that make money and pay individuals rather than gold. ‘‘If gold went to $1,000 I wouldn’t be a buyer. If it went to $800, I wouldn’t be a buyer. It’s never interested me.”

gold-and-money

One of the world’s richest men, he said “when we took over Berkshire, it was selling at $15 a share and gold was selling at $20 an ounce. Gold is now $1600 and Berkshire is $120,000. Or you can take a broader example. If you buy an ounce of gold today and you hold it at hundred years, you can go to it every day and you could coo to it and fondle it and a hundred years from now, you’ll have one ounce of gold and it won’t have done anything for you in between. You buy 100 acres of farm land and it will produce for you every year. You can buy more farmland, and all kinds of things, and you still have 100 acres of farmland at the end of 100 years. You could you buy the Dow Jones Industrial Average for 66 at the start of 1900. Gold was then $20. At the end of the century, it was 11,400, and you would also have gotten dividends for a hundred years. So a decent productive asset will kill an unproductive asset.”

Charlie Munger, vice-chairman of Berkshire Hathaway seems to agree with Warren, saying that “civilized people don’t buy gold.”

Buffett also claims that gold’s value exists because people will buy it.

Do you agree?

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