Buy Gold: Buffett shuns gold again

Gold Investment - 20 February 2012

Warren Buffett, known as the Oracle of Omaha, has recently publicly shunned an investment in gold again. This time around he has done it an article for CNN Money, trying to convey the idea that stocks or shares will outperform gold and bonds.

We’ve got to concur with Buffett that bonds won’t outperform shares, but to drag gold into the mix in such a negative manner is ridiculous to say the least. The only rational or logic reason for Buffett’s stance against gold, given its proven safe-haven status, must be the fact that he has according to Jim Rickards, investment banker and author of Currency Wars, a substantial vested interest in shares: “If I were Warren Buffett and I owned $80 billion worth of stocks, I wouldn't say nice things about gold either because it would trash the value of stocks...” (Buffett: Gold's a Foolish Investment, Wealth Wire, Brittany Stepniak, 9 February 2012). Thus, it makes sense that Buffett would at least publicly shun gold. It is not welcomed by most gold bugs and gold investors, but whether we want to admit it or not, it helps to keep the gold price down for a little longer, leaving a window of opportunity open to acquire or buy more gold while it is still relatively affordable to do so compared to gold’s true worth. At some stage, as history has proven time and time again, especially during a full-blown fiat currency crisis or collapse as the one that is currently under way, the gold price is going to soar to price levels which will totally overshadow any increases in share or stock prices. In fact, as Chris Duane of Don’t Tread On Me has noted in September last year: “You did not have to be a financial genius to have beat the pants off of Warren Buffett over the past decade, you just needed to see the trends”, and continued, “I estimate from the deposit from my first house I bought in 1999, to the money that I made from the house when I sold at the top of the housing bubble in 2005 and the value today of the gold and silver I bought in 2005, I estimate that I have made 3,750% in the past 12 years” (I Beat The Pants Off Of Warren Buffett This Past Decade, Don’t Tread On Me, Silver Shield, 15 September 2011). Needless to say, current and developing trends are strongly in favour of gold and silver ownership as confirmed by more than one trends forecaster, Gerald Celente included, despite the fact that the paper manipulation of gold and silver prices are pretty much ongoing and that the mainstream media is heavily tipped towards fiat currencies (non-redeemable paper notes, fiat paper money, electronic money, the Devil’s money, toilet paper money, trash). Make no mistake however, not so long from now people are once again going to lose all confident in fiat currencies, which will sent gold and silver prices soaring despite what the likes of Buffett have to say about it.

Given the above, you either believe Buffett and shun gold OR you choose to invest in or own gold (and silver) OR you can go for a combination of shares (stocks), gold and silver if you can afford it.