{"id":48884,"date":"2019-10-08T06:36:17","date_gmt":"2019-10-08T11:36:17","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48884"},"modified":"2019-10-08T06:36:20","modified_gmt":"2019-10-08T11:36:20","slug":"golds-long-term-gains-have-even-outperformed-warren-buffett","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48884","title":{"rendered":"Gold\u2019s long-term gains have even outperformed Warren Buffett\u2026"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/mk0smt6w49ri1qf.kinstacdn.com\/wp-content\/uploads\/2019\/10\/goldbars.png\" alt=\"\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.sovereignman.com\/category\/trends\/\"><\/a><a href=\"https:\/\/www.sovereignman.com\/trends\/golds-long-term-gains-have-even-outperformed-warren-buffett-25699\/\">Gold\u2019s long-term gains have even outperformed Warren Buffett\u2026<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Warren Buffett, despite his extraordinary investment success, has a rather famous and long-standing love\/hate relationship with precious metals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Maybe it started with his dad\u2013 Congressman Howard Buffett of Nebraska\u2013 who, as a staunch advocate for the gold standard, argued to his colleagues on Capitol Hill that \u201cpaper money systems have always wound up with collapse and economic chaos.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Warren himself acquired a record-setting 128 million ounces of silver back in the late 1990s\u2026 which he later sold at a profit in the early 2000s.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But to listen to him talk about precious metals these days, he\u2019s always negative.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Buffett often quips that if you took the world\u2019s entire supply of gold and melted it together, it would form a cube of about 68 feet (~21 meters) per side and be worth around $9 trillion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With that same $9 trillion, you could buy every share of Apple, Disney, Google, Microsoft, JP Morgan, Exxon Mobil, all the farmland in the United States, all the developable land in Manhattan, and still have more than a trillion dollars left over.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is Buffett\u2019s central argument: gold doesn\u2019t produce anything. So it\u2019s much better to invest in a productive asset like a business, farmland, etc.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sure, I\u2019d rather own a profitable, productive asset than a pile of metal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But Buffett is completely wrong to compare gold to productive assets\u2026 they\u2019re apples and oranges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Gold isn\u2019t an \u2018investment\u2019. It\u2019s an insurance policy against paper currencies will lose value over time. So a MUCH better comparison for gold is CASH.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using Buffett\u2019s same thought experiment, would an investor with $9 trillion rather have all that money sitting in a bank earning 0%? Or buy all the productive assets I mentioned above?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Clearly it\u2019s more attractive to own productive assets than cash sitting in a bank.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold\u2019s long-term gains have even outperformed Warren Buffett\u2026 Warren Buffett, despite his extraordinary investment success, has a rather famous and long-standing love\/hate relationship with precious metals. Maybe it started with his dad\u2013 Congressman Howard Buffett of Nebraska\u2013 who, as a staunch advocate for the gold standard, argued to his colleagues on Capitol Hill that \u201cpaper [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[374,1183,1100,647,7312,7313,4431],"class_list":["post-48884","post","type-post","status-publish","format-standard","hentry","category-economics","tag-gold","tag-gold-standard","tag-paper-money","tag-precious-metals","tag-simon-black","tag-sovereign-man","tag-warren-buffett"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48884"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48884\/revisions"}],"predecessor-version":[{"id":48885,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48884\/revisions\/48885"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}