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Warren Buffett: gold has no value
The Telegraph ^ | 2/10/2012 | Emma Wall

Posted on 02/10/2012 6:22:11 PM PST by bruinbirdman

Berkshire Hathaway chairman and famous investor Warren Buffett has dismissed gold as a "valueless asset".

Billionaire investor Warren Buffett has dismissed gold as a valueless asset saying that it has no inherent value. In an article for Fortune magazine, Buffett said that gold investors were pinning their hopes on future demand.

He warned that gold was a self-inflating bubble, created by investors desperate for a viable alternative to property and shares.

The infamous investor warned that investors in gold would be left with egg on their face when the price eventually crashed.

"Bubbles blown large enough inevitably pop," he said. "And then the old proverb is confirmed once again: "What the wise man does in the beginning, the fool does in the end."

Buffett's attack comes as private bank Coutts predicts that the gold price will hit "new highs" by the end of 2012.

In a report from the bank, that counts the Queen among its clients, gold is confirmed as a "key asset in investment portfolios".

Coutts said: "The easing of global monetary conditions in response to the liquidity squeeze in the latter part of 2011 has boosted gold.

"Some further stimulus measures could now be postponed by an improving economic outlook, at least in the US. Nonetheless, negative real returns, adjusted for risk, are undermining confidence in major currencies as a store of value. We expect gold prices to hit new highs by year end."

Meanwhile, gold fell more than 1 pc on Friday, hurt by a slide in the euro after a Greek party leader said he couldn't back the 130-billion euro bailout deal the country needs to avoid going bankrupt, which comes at the cost of painful austerity measures.

Spot gold fell as low as $1,703.69 an ounce and was down 0.9 percent

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Crime/Corruption; News/Current Events; Politics/Elections
KEYWORDS: buffett; gold; goldstandard; warrenbuffett
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1 posted on 02/10/2012 6:22:20 PM PST by bruinbirdman
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To: bruinbirdman

I guess this man doesn’t pay attention.

Everything is worth what someone else is willing to pay for it.

It is that simple.


2 posted on 02/10/2012 6:26:06 PM PST by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: bruinbirdman

Is this from The Onion?


3 posted on 02/10/2012 6:26:11 PM PST by ought-six ( Multiculturalism is national suicide, and political correctness is the cyanide capsule.)
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To: bruinbirdman

He is right, of course. When you get right down to it, food is the only currency.


4 posted on 02/10/2012 6:26:48 PM PST by gorush (History repeats itself because human nature is static)
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To: bruinbirdman

I guess he thinks his words will drive it done then he can buy. Or maybe he’s got a “buy” order coming due.


5 posted on 02/10/2012 6:27:44 PM PST by Terry Mross (.)
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To: bruinbirdman
Wind Bag never says anything unless he stands to reap profits from the reactions of boobs. So figure out how he will clean up in gold, either long or short, and you will know why he spewed this bullshit. Then go and do thou likewise.
6 posted on 02/10/2012 6:27:59 PM PST by hinckley buzzard
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To: bruinbirdman

Fine, Warren. Just send me all of your “worthless” gold bullion, gold coins, gold jewelry, gold stocks and gold futures.

I will make sure that the environment is protected and these things do not end up in the landfill with all the other “worthless” stuff.


7 posted on 02/10/2012 6:29:49 PM PST by BwanaNdege (Man has often lost his way, but modern man has lost his address - Gilbert K. Chesterton)
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To: bruinbirdman

I’d gladly pay him a token price plus shipping to relieve him of his “worthless asset”.


8 posted on 02/10/2012 6:29:59 PM PST by Rebelbase
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To: bruinbirdman

I’d never invest with this commie puke. This bastard made money by riding the roaring Reagan stock market in the 80s. Now that he has his haul, he’ll make darn sure you can’t get yours.


9 posted on 02/10/2012 6:30:35 PM PST by grumpygresh (Democrats delenda est; zero sera dans l'enfer bientot.)
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To: bruinbirdman

Interpretation: “I’m short gold futures.”


10 posted on 02/10/2012 6:30:54 PM PST by immadashell
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To: Rebelbase

I called “dibbs” first!


11 posted on 02/10/2012 6:31:12 PM PST by BwanaNdege (Man has often lost his way, but modern man has lost his address - Gilbert K. Chesterton)
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To: GeronL
Gold has never crashed.
12 posted on 02/10/2012 6:31:35 PM PST by omega4179 (Internet ID:FU░&#BO)
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To: bruinbirdman

Love him or hate him (I hate) he knows financial markets. Gold is in a current bubble IMHO also.


13 posted on 02/10/2012 6:31:38 PM PST by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
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To: bruinbirdman

Buffy needs to write Barry’s treasury a huge check and then stick a cork in it. If Americans want any crap out of him, we’ll unscrew his head and dip it out.


14 posted on 02/10/2012 6:32:00 PM PST by FlingWingFlyer (FOX News! In the barrel for Barry!)
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To: gorush

You left out alcohol, tobacco and firearms. With those items you can get all the food you need and be happy at the same time.


15 posted on 02/10/2012 6:32:16 PM PST by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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To: gorush
When you get right down to it, food is the only currency.

You must be a Greenspan fan. Back when gold was under 300 an ounce he said "gold is dead, we may as well open a beef window at the Fed." The rest, as they say, is history.

16 posted on 02/10/2012 6:32:28 PM PST by hinckley buzzard
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To: GeronL
...well...how about Omaha...and Berkshire in particular...

Without Warren's government cover...Where in the Hell would he be.... sucking corn futures no doubt....

17 posted on 02/10/2012 6:32:28 PM PST by ptsal (E)
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To: bruinbirdman

The concept of “inherent value” is ridiculous. Nothing has “inherent value”. Who cares? People place value in gold. Always have. Always will. Buffet is playing Jedi mind tricks with weak-minded fools when he says that gold has no value.


18 posted on 02/10/2012 6:32:33 PM PST by ClearCase_guy (I am pro-Jesus, anti-abortion, pro-limited government, anti-GOP.)
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To: bruinbirdman

He’s an @$$!

The value in any commodity is found in the marketplace.

Until a culture is at the point of starvation, gold will continue to have value.


19 posted on 02/10/2012 6:33:30 PM PST by G Larry (We are NOT obliged to carry the snake in our pocket and then dismiss the bites as natural behavior.)
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To: bruinbirdman

In a sense, he’s right. Gold - like anything else - only has value if there are other people who are willing to attribute value to it. Gold has typically been a good investment through the millennia specifically because there’ve always been people who attribute that value to it.

Nevertheless, gold is no more inherently valuable than paper currency is, or tulip bulbs, for that matter. In a situation where society breaks down, given that we don’t really use gold in coinage anymore, gold would largely be a bothersome, heavy lump of metal you’d have to transport around. Much better to invest in food, water, and ammo, as well as booze and other “trade items.”


20 posted on 02/10/2012 6:34:47 PM PST by Yashcheritsiy
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To: BwanaNdege

10 seconds. I hate you!


21 posted on 02/10/2012 6:35:50 PM PST by Rebelbase
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To: bruinbirdman

I’d like to see him tell that to everyone for the last 6,000 years.


22 posted on 02/10/2012 6:37:14 PM PST by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: Drango
No, love him or hate him he influences and manipulates financial markets. Warren Buffet is like Howard Hughes, the last financial genius who, like Buffet, started out rich on his father's fortunes. When Hughes finally croaked and his estate was audited it was found that he just about broke even in his career. Given the uncritical worship by the media financial illiterates, I expect a similar revelation when Wind Bag runs out of air.
23 posted on 02/10/2012 6:39:50 PM PST by hinckley buzzard
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To: bruinbirdman

No guarantees, but usually when someone like Buffett comes out with a statement like this, he does so in order to drive the price down so he can buy some more.

It’s one thing when a market analyst says what he thinks. It’s something else entirely when a major bank or a billionaire investor says it.

I’d guess that gold should be heading back up in a couple of weeks.


24 posted on 02/10/2012 6:39:58 PM PST by Cicero (Marcus Tullius)
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To: bruinbirdman

Actually, Warren, you are of no real value to this country. Shut up and disappear.


25 posted on 02/10/2012 6:41:35 PM PST by formosa (Formosa)
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To: hinckley buzzard

Anything can be currency as long as the majority agrees to it. But what real value does a dollar bill have except for an ephemeral acquiescence by all involved? If that acquiescence evaporates it is just paper. Gold is really no different. I believe a real-world example will be forthcoming.


26 posted on 02/10/2012 6:42:26 PM PST by gorush (History repeats itself because human nature is static)
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To: Cicero
Bump. Watch for a noticeable selloff first.
27 posted on 02/10/2012 6:43:02 PM PST by hinckley buzzard
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To: bruinbirdman

He who steals my purse, steals cash.


28 posted on 02/10/2012 6:43:31 PM PST by Lonesome in Massachussets (Ceterum autem censeo, Obama delenda est.)
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To: bruinbirdman

Odd, Warren ... you don’t seem to think Berkshire Hathaway’s taxes have any value either. Is that why you don’t pay them?


29 posted on 02/10/2012 6:43:35 PM PST by Colonel_Flagg (Why, yes. I AM in a bad mood.)
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To: gorush

Lead is quite valuable, too.


30 posted on 02/10/2012 6:44:33 PM PST by Blood of Tyrants (Never believe anything in politics until it has been officially denied.)
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To: ClearCase_guy

The inherent value of everything is 0.


31 posted on 02/10/2012 6:44:57 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: bruinbirdman

Buffet makes his money from deals with Obama.


32 posted on 02/10/2012 6:47:11 PM PST by chopperman
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To: gorush
The difference between gold and paper is 5000 years of history. Paper has always depreciated to zero, without exception in the history of the world. It is just a matter of time. Gold has not ever done this.

Nobody has used food as a medium of exchange since maybe medieval Africans, despite food's intrinsic value. There is a reason for this.

33 posted on 02/10/2012 6:47:47 PM PST by hinckley buzzard
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To: bruinbirdman

Today’s global bubble is debt; private, municipal and especially sovereign.

The “easy” “solution” is more debt, piled on top of more debt. The game is to keep papering over that mega bubble with still more debt paper.

Buffett must help keep the game going; his company is on the hook for billions of credit derivatives and he can’t afford for the game to end prematurely. He is part of the problem, but he also understands how to play the fascist rules in partnership with statist government leaders. He also understands that he needs to own real, hard assets that can’t be inflated away through money printing.

The price of gold is like a canary in the coal mine as an indicator of fiat currency’s falling real value. The price reveals what bankers, government leaders and fascist-statists want to hide, including the exploitation and financial repression of savers, pensioners, and the larger middle class. Warren, you are pathetic.


34 posted on 02/10/2012 6:48:33 PM PST by JustTheTruth
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To: JustTheTruth

What a lying animal Warren Buffett is. He wants everyone else to be poor. Gold is the one thing everyone should be buying. I hope his lies don’t cause people to lose their shirts.

The sooner this Obama-loving piece of excrement croaks the sooner Satan gets a new buttboy.


35 posted on 02/10/2012 6:50:38 PM PST by bigdirty
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To: bruinbirdman

If you look at it as a metal, it IS highly inflated.
I remember gold was $35 an ounce when I was a child.


36 posted on 02/10/2012 6:51:47 PM PST by AlexW
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To: Drango

in the 1950’s gold $/oz was about 20x oil $/bbl. Brought up to the present, that would be similar to $2000 oz for gold. Saudi’s do value gold.


37 posted on 02/10/2012 6:52:03 PM PST by GregoryFul (Obama - Jim Jones redux)
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To: Yashcheritsiy
"Nevertheless, gold is no more inherently valuable than paper currency is..."

So astoundingly wrong.

Ask the Weimar people. The Powers That Be can, and do, print little pieces of paper with neat ink designs on them. And they will print until the world is awash in pretty toilet paper if they feel like it. Gold is rare and the supply cannot be exponentially increased by the whim of some central banker(s).

FWIW, a FRN, whether a 1 or a 100, has 12.4 BTU heat value. A stack might prevent frostbite after TSHTF.

You are correct in the "food, water and ammo" department. Don't forget smokes.

38 posted on 02/10/2012 6:53:53 PM PST by SnuffaBolshevik (In a tornado, even turkeys can fly.)
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To: hinckley buzzard

I don’t disagree with any of your points. I’m just saying that “when you get right down to it”... If civilization breaks down you’d give a lot of gold for a little food if conditions were right.


39 posted on 02/10/2012 6:54:03 PM PST by gorush (History repeats itself because human nature is static)
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To: hinckley buzzard

I read about Warren Buffet buying a huge amount of silver a few years ago before the big move up in price. I’m willing to bet he owns some gold too.


40 posted on 02/10/2012 6:55:43 PM PST by peeps36 (America is being destroyed by filthy traitors in the political establishment)
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To: gorush

“He is right, of course. When you get right down to it, food is the only currency.”

What about lead?


41 posted on 02/10/2012 6:59:32 PM PST by dljordan ("Tyranny, like Hell, is not easily conquered.")
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To: bruinbirdman

Valueless no but it is worth far less than its current price.


42 posted on 02/10/2012 6:59:47 PM PST by montanajoe
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To: gorush

I know he is speaking literally, but really...silver and gold have been the traditional store of wealth and value since the beginning of civilization.

No, aside from some pure metal uses in electronics there is little you can “make” from gold.

And yes, when I see the dopes on TV hawking gold, I appreciate what Buffet means about it spiking.

But, don’t ya just hate people that are that literal, in the face of reality?


43 posted on 02/10/2012 7:00:38 PM PST by Vermont Lt (I just don't like anything about the President. And I don't think he's a nice guy.)
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To: bruinbirdman

“Wastin’ away again in Margaritaville......”

Oh, wait, that’s the brother.....never mind.


44 posted on 02/10/2012 7:01:43 PM PST by Sivad (NorCal Red Turf)
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To: unixfox

I agree. If you want to invest in metals as a hedge against hard times, you should look long and hard at lead.


45 posted on 02/10/2012 7:02:32 PM PST by beef (Who Killed Kennewick Man?)
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To: bruinbirdman
GOLD HAS VALUE BECAUSE WOMEN WANT IT.
NO BLING, NO BANG.


Buffet must be out of bang.
46 posted on 02/10/2012 7:04:24 PM PST by UnbelievingScumOnTheOtherSide (REPEAL WASHINGTON! -- Islam Delenda Est! -- I Want Constantinople Back. -- Rumble thee forth.)
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To: ClearCase_guy

He must be buying!


47 posted on 02/10/2012 7:04:27 PM PST by The Old Commander (Where is Madam dufarge when we need her?)
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To: gorush
"If civilization breaks down you’d give a lot of gold for a little food if conditions were right."

If civilization breaks down, those with firearms and ammunition will be in possession of the gold, food and everything else. If they can out shoot all the other people with firearms and ammunition.

Pray that it doesn't happen.

48 posted on 02/10/2012 7:05:11 PM PST by SnuffaBolshevik (In a tornado, even turkeys can fly.)
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To: Vermont Lt
"But, don’t ya just hate people that are that literal, in the face of reality?"

No, I don't.

49 posted on 02/10/2012 7:06:30 PM PST by gorush (History repeats itself because human nature is static)
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To: gorush
If civilization breaks down you’d give a lot of gold for a little food if conditions were right.

Only if you lack discipline.
Me, I'm planning to give a little bit of food for a log of gold.

50 posted on 02/10/2012 7:08:18 PM PST by stormhill
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