Buffett misses the point on gold
Feb. 29, 2012, 12:01 a.m. EST
Buffett rebuffs gold, but inflation says ‘buy’
Commentary: Use ETFs to hedge rising prices, dollar weakness
By Steve Beck
PALO ALTO, Calif. (MarketWatch) — Buying gold is now accessible for all, but the sage of Omaha has spoken. Warren Buffett says gold is not an investment — it’s a speculation and does not belong in an investor’s portfolio.
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Anyone for pile A? No, I didn’t think so. It’s as though Buffett, in one fell swoop, reduced the gold investor to a blustery, slightly deranged Yukon Cornelius wandering the financial markets with a metaphorical pickaxe in hand, singing an off-key melody of “Silver and Gold.”
But before you shamefully squirrel away your private gold stash into some spider hole, let’s take a closer look at Buffett’s argument and determine if there is in fact a case for gold as a portfolio tool.
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Today, investors are faced with a unique and difficult problem. The U.S. and European economies are strapped with unprecedented levels of government and personal debt. The Federal Reserve’s approach to this problem appears to be currency debasement that could take many years to work out. In contrast, gold has provided an accepted and reliable currency across societies and ages.
Should you sell everything and buy the cube of gold? No. Should you consider some exposure to gold in your globally diversified portfolio? At MarketRiders, we think that make sense.
Full article: http://www.marketwatch.com/story/buffett-rebuffs-gold-but-inflation-says-buy-2012-02-29
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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