Thu, 23 February 2012
Jordan Roy-Byrne of TheDailyGold.com believes Warren Buffet's derisive comments about prices and why investors purchase gold are totally off the mark. While the Oracle of Omaha has had a spectacular investing career, in the past five years, gold and silver have far outperformed his company, Berkshire Hathaway. In February of 2007, the Berkshire shares were trading around $71. Today those same shares are around $80. Contrast this with gold, which was around $660 in February 2007, and today it's at $1780. Where would you rather have invested? Even going back to February of 2000, Berkshire was around $30, and gold was at $293. The results for the last 12 years show Berkshire is up 2.67 times, and gold is up 6.07 times. So much for barbarous relics! Gold has far outperformed Buffet and the rest of the market, by a long shot.
Perhaps you should regard Buffet's comments about gold the same way you do his statements about taxes: very interesting but very ill-informed.
Please fill out the subscription box on KerryLutz.com to receive your free Financial Survival Toolkit.