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Warren Buffett: If Gold Went to $1000 I Still Wouldn’t Be a Buyer.

May 02, 2013 | About:

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phillwilson11
Phillwilson11 - 1 year ago
I don't personally like gold either, but if you are looking 5, 10, or more years out, aren't a lot of commodities good investments, due to basic supply and demand? My understanding is that gold, silver, oil, uranium, etc. are dwindling resources, so won't they have to go up in price over time?
tonyg34
Tonyg34 - 1 year ago
why own the inert commodities when you can own a company that adds value to the supply chain of commodity production, sales, and use?

The Big B is talking about just physical gold, like coins or whatever, while he would also most likely never own a mining op - one shouldn't conflate not wanting to own gold at any price with not wanting to own something like BHP at any price
Cogito
Cogito premium member - 1 year ago
Phillwilson11, the point is that gold or silver do not have an intrinsic value as they don't come with any potential cashflows. Hence, they aren't investments. Their prices are driven by demand and supply, but it is pure luck whether you will be able to predict demand and supply (btw: I don't understand how gold supply can be dwindling - more gold is mined every day and one cannot use up gold, hence the amount of gold available should be growing all the time)
crazyfire
Crazyfire - 1 year ago


Gold is a type of an exchange, like money

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