The latest annual letter to shareholders of Berkshire Hathaway, the investment company run by Warren Buffet and Charlie Munger, has a short section on gold which has made waves round the investment world. It’s the best statement of the investment case against gold I’ve ever seen. Buffet, the “sage of Omaha,” is not infallible but his argument is beautifully expressed and illustrated. You’ll find it on pages 18-19. The argument, in essence, is that gold has no yield: “if you own one ounce of gold for an eternity, you will still own one ounce at its end.”
K
Yeah, we had a city series speaker that had the same spiel regarding gold, and dismissed investing in it as stupid when asked the question. Gold was $700/oz cheaper than it is now. True story…