Warren Buffet and gold

I am unable to post charts so a link will have to do for now.

As so often in the past ten years, Mr. Buffet has once again blurted out to all that would listen that gold is neither a sensible investment nor, indeed, is it something that should form part of a balanced investment strategy. http://www.timeslive.co.za/opinion/columnists/article1047462.ece/Buffett-sticking-to-his-guns

As I have already pointed out in this blog over the years, Mr. Buffet is the archetype of the inflationary investor. I have gone out on a limb in these pages and have submitted that if indeed we are to enter another inflationary era then you could do worse than invest in Mr. Buffet’s Berkshire and Mr. Buffet should obviously continue to be anointed as the most legendary investor ever…

But when viewed through the proper lens, Mr. Buffets’ Berkshire investment vehicle is teetering on the precipice…

http://stockcharts.com/h-sc/ui?s=BRK/A:$GOLD&p=M&b=4&g=0&id=p56448948924&a=235108746

A bon entendeur…

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3 Responses to “Warren Buffet and gold”

  1. Patrick Donnelly Says:

    Reprint that comment on Golem!!!!

  2. guidoamm Says:

    Very possible. Do you have a link to that headline? I googled it but couldn’t find an article with that headline.

  3. Andy V Says:

    Whilst the headlines said:
    “Warren Buffet sells 99% of gold holdings”

    if you read between the lines he actually sold his paper contracts. So he didn’t have any gold, he had paper.

    “Warren buffet sells 99% of his paper promises”

    Perfectly sensible to sell your paper contracts as long as you then buy the phyiscal asset? Perhaps he realises that the paper is worthless?
    Perhaps he hopes to now drop the price of gold and then to buy it up?

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