« ALEA Home | Email msg. | Reply to msg. | Post new | Board info. Previous | Home | Next

Re: Buffett on gold

By: faul in ALEA | Recommend this post (0)
Sun, 12 Feb 12 11:10 PM | 139 view(s)
Boardmark this board | The Trust Matrix
Msg. 06645 of 54959
(This msg. is a reply to 06644 by Cactus Flower)

Jump:
Jump to board:
Jump to msg. #

Alea......

O.K watchout for a spike in Gold within the next few months.
They always wheel out the Sage's & Guru's to bash the yellow
metal before a big rise......we shall see.

Gold purchasers buy on the fear that their purchasing power
is always greatly eroded by central bank money printing &
inflation....you buy gold to preserve your wealth only.

But knowing that the central banks sell upto 350 times
a claim on an oz of gold for every oz that exists & more
CB money printing should take us to about $55,000 an oz
before this is done.

When 1% of 1% of funds are invested in physical gold & silver
one could hardly call it a bubble....when the high streets &
internet,papers etc are full of ads offering to buy everyone's
gold it's hardly a bubble.......when you see a year or two of
those same entities selling gold to the public.....then we have
a bubble.

The sheeple blindly follow their Sage's & Guru's....

Doma.



- - - - -
View Replies (1) »



» You can also:
- - - - -
The above is a reply to the following message:
Buffett on gold
By: Cactus Flower
in ALEA
Sun, 12 Feb 12 9:08 PM
Msg. 06644 of 54959

"What motivates most gold purchasers is their belief that the ranks of the fearful will grow. During the past decade that belief has proved correct. Beyond that, the rising price has on its own generated additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis. As "bandwagon" investors join any party, they create their own truth -- for a while."

http://finance.fortune.cnn.com/2012/02/09/warren-buffett-berkshire-shareholder-letter/?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

It's actually a good piece all the way through. I don't really agree with him re paper. But I know why. Treasury paper doesn't make a great long-run investment. But in periods of deflation and insecurity, it's a port in a storm. So the value depends on the environment.


« ALEA Home | Email msg. | Reply to msg. | Post new | Board info. Previous | Home | Next