Gyroscopic Investing

I thought this quote was pretty funny...

(They refers to gold bugs).

“They want everybody to be so scared they run to a cave with gold.  Caves might be a better investment than gold.  At least they’re not producing new caves all the time.”?

Gold has been shown to have an almost undeniable tie to negative real interest rates.  Warren has repeatedly said that he is skeptical that bonds will keep up with inflation to a suitable degree.  I wonder if anyone has pointed this out to him.

I think too many try to tie the actual investing in gold with the peddlers of disaster-inflationism... just like others try to look at investing in gov't bonds as a belief that the gov't is good at allocating resources.

You think he'd be a bit more humble about all this with BRK's poor relative performance.

If Warren looked at world production of gold in the last 10 years in relation to the price increase and saw how modest production increases have been in response to rising prices, he might reconsider his "at least they're not producing new caves all the time comment."

I would say part of the reason gold prices have risen as much as they have is that there hasn't been a huge new wave of supply hitting the market in response to rising prices.

As far as caves go, I wasn't aware that they had stopped making new caves.  Ironically, it seems like every time a new mine is created, it also creates a new cave, and thus the supply of caves should increase as mining activity increases (give or take a few caves).

Whoever is holding gold seems to be listening to Buffett & Co...  Gold is dropping like a rock today!

PP67 wrote: Whoever is holding gold seems to be listening to Buffett & Co...  Gold is dropping like a rock today!

Sometimes a dive in gold is usually indicative of institutions performing a firesale and scrambling for cash to remain solvent. On a day like today, that seems plausible.

PP67 wrote:Whoever is holding gold seems to be listening to Buffett & Co...  Gold is dropping like a rock today!

If you are a GTU fan, the premium is under 1%.