Oh, and by the way, my friend had a personal conversation with Warren Buffett. Buffett asked him how his investments were doing, and my friend answered: “I have a lot of investments outside the dollar, mostly precious metals”. And Buffett said “That’s very good, I also like them, and especially …”. That was about two years ago.
Sure, but he bought mine stocks, not the gold.
Crises come and go, and in the last one gold went to $850 ($6000 in today’s dollars if the dollar loses half its value every decade).
Now you’ve convinced me. Since gold has had a massively negative return from your $850 ($6000 in today’s, as you say) down to the $600’s in today’s dollars, now it must be a good time to buy gold.
Tootsie roll has had almost 300% returns over the same period, and in really bad times you can actually eat a Tootsie roll. 8^)
Good luck with your gold ventures (really), but when they are pumping out commercials for buying gold on every medium known to man–you are probably getting to the party late. And unlike google, which might also be overavalued, gold cannot earn its way back to its purchase price. When you would have been better off putting your money in your mattress rather than buy gold at $850, doesn’t that make you a wee bit wary today?
