In a recent interview (as well as during numerous talks with shareholders), veteran and venerable investor Warren Buffet is adamant gold has no place in a sensible mix of investments in anyone’s portfolio thus adding his voice to the likes of Willem Buiter and all Western central bankers.
What would be good is if Mr. Buffet could explain the performance of his investments over the past ten years in relation to the performance of gold bullion as an investment and as outlined in the below chart.
Above is a chart of Mr. Buffet’s investment company share price valued in gold over the past fifteen years.
People truly will not understand a problem if their livelihood depends on them not understanding it. Either that, or Mr. Buffet has an agenda. How else could someone be consistently wrong over a period of ten years and still think that nothing has changed in the global economy?
Gold may not be an ideal investment at all times. But clearly, gold has served a real purpose in the recent past and Mr. Buffet has either failed to notice or he must have an agenda.