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"If you wrapped up all the $100 bills in circulation, it would form a cube about 74 feet per...

"If you wrapped up all the $100 bills in circulation, it would form a cube about 74 feet per side ... in a hundred years, that money will have produced nothing. In a thousand years ... worthless," writes David Einhorn, taking aim at Warren Buffett's bear case on gold (after being the subject of an ugly attack by the Oracle's partner).
Comments (97)
  • bbro
    , contributor
    Comments (9604) | Send Message
     
    I have some gold coins...if I want to eat I have to change those gold coins into paper currency to buy something to eat....
    30 May 2012, 11:36 AM Reply Like
  • mickmars
    , contributor
    Comments (1323) | Send Message
     
    Not true. I'll gladly give you a large pizza in exchange for those useless gold coins. I'll even deliver.
    30 May 2012, 12:35 PM Reply Like
  • bbro
    , contributor
    Comments (9604) | Send Message
     
    150 deliveries?? or 200 deliveries??
    30 May 2012, 01:04 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    not for much longer..........
    26 Jun 2012, 10:55 AM Reply Like
  • Matthew Lewis
    , contributor
    Comments (343) | Send Message
     
    Buffett is pretty clear that you shouldn't own much cash....not sure what David Einhorn is getting at here.
    30 May 2012, 11:36 AM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    If that is the case then why does Warren have billion more than is necessary on his balance sheet?
    30 May 2012, 12:46 PM Reply Like
  • Matthew Lewis
    , contributor
    Comments (343) | Send Message
     
    Who is deciding what is necessary? After 9-11 Buffett stated that the insurance business did not have enough of a cash reserve for these types of events. They keep a conservative amount of cash on the balance sheet to provide liquidity, not because he believes the return will be good.
    30 May 2012, 12:58 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Warren has more cash on his balance sheet than most if not all other companies in the insurance industry.
    30 May 2012, 01:10 PM Reply Like
  • Matthew Lewis
    , contributor
    Comments (343) | Send Message
     
    Here is his quote straight from his Fortune article in February.

     

    "Under today's conditions, therefore, I do not like currency-based investments. Even so, Berkshire holds significant amounts of them, primarily of the short-term variety. At Berkshire the need for ample liquidity occupies center stage and will never be slighted, however inadequate rates may be. Accommodating this need, we primarily hold U.S. Treasury bills, the only investment that can be counted on for liquidity under the most chaotic of economic conditions. Our working level for liquidity is $20 billion; $10 billion is our absolute minimum."

     

    "Over the past century these instruments have destroyed the purchasing power of investors in many countries, even as these holders continued to receive timely payments of interest and principal. This ugly result, moreover, will forever recur. Governments determine the ultimate value of money, and systemic forces will sometimes cause them to gravitate to policies that produce inflation. From time to time such policies spin out of control."
    30 May 2012, 01:22 PM Reply Like
  • Chuck
    , contributor
    Comments (102) | Send Message
     
    If you took all the $100 bills in circuclation, put them into a huge tank of water, let them soak for a week, then siphoned off the water, boiled it down, you'd have a sheet on the bottom of cocaine worth about $30 Billion Dollars?

     

    I'm just sayin...
    30 May 2012, 11:41 AM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Paper will not hold its value gold will. Paper has been an experiment this past hundred years....its about to fail. Gold has always been and always will be. Gold hasn't shone very much while the little paper experiment has taken place this past hundred years......be ready for the big sparkle of gold and silver very soon as paper takes its worthless dying breaths.

     

    You think Im crazy well so be it, a good sign to follow is China, they have been buying billions and billions of dollars worth of pysical gold and silver over the past few years as well as telling their people to purchase also..........are the Chinese stupid? I believe not, what about you would you call this monster economic dragon (China) stupid?
    30 May 2012, 11:51 AM Reply Like
  • Matthew Lewis
    , contributor
    Comments (343) | Send Message
     
    But Buffett doesn't say to hold cash...he says to hold shares of common stock.
    30 May 2012, 11:56 AM Reply Like
  • mbcy
    , contributor
    Comments (859) | Send Message
     
    I think Buffett is not Santa Claus.
    I think Buffett has never said out loud to help other people.
    I think that every word of Buffett said publicly pursuing only one goal.
    I mean the personal self-interest of the Buffet.

     

    If someone thinks that Buffett is a Santa Claus, then listen to him and do as he says. And you will be more poorer and Buffett will be even richer.
    1 Jun 2012, 02:08 PM Reply Like
  • TWagen
    , contributor
    Comments (143) | Send Message
     
    He says that the value of gold is not correct (Too high) and that to bet on that future outcome is crazy (Munger). Einhorn and others are saying let time tell but money is not holding value. All assets can get blasted so risk is everywhere.

     

    Staples and food may not be a bad bet. Bu ya product and look 6 mo's later. It is always significantly higher and the longer the timeframe, the bigger the difference.

     

    Einhorn is right that the money was spent to paper over a malinvestment and is now worthless but needs to be covered at some point. The question is how (Inflation, rebasement, other....)
    30 May 2012, 12:02 PM Reply Like
  • Tack
    , contributor
    Comments (13210) | Send Message
     
    Do people need piles of paper (money)? No.

     

    Do they need to stare at shiny yellow metal? No.

     

    Do they want and need all kinds of products and services that bot make their lives literally possible in some cases and more enjoyable in others? Yes.

     

    That should tell you all you need to know about where to invest money over the long haul.
    30 May 2012, 01:11 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    How do you propse to trade to obtain these things?
    30 May 2012, 01:32 PM Reply Like
  • Financial Insights
    , contributor
    Comments (950) | Send Message
     
    What will Gold have produced in a 100 years? Absolutely nothing either. What a horrible argument.
    30 May 2012, 12:17 PM Reply Like
  • mbcy
    , contributor
    Comments (859) | Send Message
     
    You do not understand ... Gold - it's not an asset. Gold - it's money in their highest form. Ownership of gold does not generate a profit. But ownership of gold does not allow you to rob. The owners of the paper for 100 years, lost 98% of purchasing power.
    Owners of gold for 100 years did not lose anything.

     

    100 years ago, a good suit for men has cost 2 ounces of gold.
    And today, a good suit for men has a price 2 ounces of gold.
    3 Jun 2012, 06:38 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    The fact that people are still arguing about gold proves the point that they really don't get what Buffett is saying. DID HE EVER SAY HOLD CASH? NO. He said holding PRODUCTIVE ASSETS (a category under which gold DOES NOT FALL INTO) will outperform nonproductive assets in the long run. I don't understand why that's such a hard concept to understand.
    3 Jun 2012, 02:29 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Because Buffet once held a huge Silver position at the start of the decade and sold out early. He even admits it today.

     

    To me he is just trying to talk himself out of missing the best performing investment over the last 10 years.

     

    Warren likes to buy low and to him it does not make much sense to buy an asset which has gone up 10 years in a row. To him it feels like buying at a top.

     

    Not going to begrudge him because his track record speaks for itself.
    3 Jun 2012, 02:40 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    Except silver is actually used to make things (industrial purposes) unlike gold which is used for......jewelry primarily?
    3 Jun 2012, 02:48 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Silver does have industrial and medicinal purposes. Gold can be used in jewelry or held in physical form. There are some industrial uses for gold but the high price forces firms to look for alternatives.

     

    http://bit.ly/AlAjza
    3 Jun 2012, 02:58 PM Reply Like
  • mbcy
    , contributor
    Comments (859) | Send Message
     
    Investing in gold is more profitable than investing in the stock of paper - it is obvious and well-known fact. (If we are talking only about investing but not on market speculation).
    If we are talking about market speculation, no matter what you sell - securities, gold or dung. In this case, your success depends on your personal talents, but not the asset that you speculate on the market. I do not think prudent to discuss the topic "What is an asset, the most profitable for market speculation."

     

    Beginning in 2000, the Dow lost against gold 5 times!
    http://bit.ly/Kbc0Uh

     

    In 2005, Rick Munarriz queried whether Google or gold was a better investment when both seemed to have equal value on the stock market.h By the end of 2008, Google closed at $307.65 a share, while gold closed the year at $866 an ounce.

     

    So, if we talk about investments, the investment in gold is certainly more profitable and less risky than investment in any IOUs.
    If we talk about market speculation, it is possible to speculate not only a successful stock trading, and successful gold trading too, and even successful trading of shit.
    Your mistake is that you are trying to compare between investment and speculation. There is no logic to compare hats and tangerines.
    4 Jun 2012, 07:23 PM Reply Like
  • boldaq
    , contributor
    Comments (97) | Send Message
     
    Buffett ihas become a useful idiot for the obozo administration. He's old, useless and has lost all credibility. Forget Buffett.
    30 May 2012, 12:22 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Gold will hold its value paper will loose its value. How well do you know your history? What has happened before WILL happen again.
    30 May 2012, 12:22 PM Reply Like
  • kmi
    , contributor
    Comments (4023) | Send Message
     
    By the time my 'paper' has lost its 'value' I'll have other paper that has more 'value'.

     

    The 'gold holds value' argument is terrible any way you measure it. Anyone participating in the economy, transacting business, will do better in 'currency' than in gold, always. Unless we are comparing burying a shoebox full of bills to a shoebox full of gold. In which case gold may have an edge.

     

    But I sure hope that isn't your retirement strategy.
    30 May 2012, 12:27 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    Excellent points. Gold has been used for thousands of years and we need to look to the past!
    Its used for buying slaves far better then paper currency.
    Least we forget it was used to purchase vases of oil and oxen for sacraficial religious ceremonies.
    30 May 2012, 01:17 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Mmmmmmmm tell your argument to the Chinese who have bought billions and billions of dollars woth of physical gold and silver over the past few years while prices were supposedly high.
    30 May 2012, 01:45 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    goldmember: so you are suggesting that an economic thesis is accurate based upon how much money is spent?
    Time to load up on CDS!
    30 May 2012, 01:50 PM Reply Like
  • kmi
    , contributor
    Comments (4023) | Send Message
     
    "the Chinese who have bought billions and billions of dollars woth of physical gold"

     

    goldmember steve, if the Chinese jump off a bridge, are you going to follow them?
    30 May 2012, 01:53 PM Reply Like
  • Matthew Lewis
    , contributor
    Comments (343) | Send Message
     
    Doesn't China also own billions of dollars of treasuries that the gold crowd claims will never be repaid? Yea...they are great investors over there. Can't have it both ways.
    30 May 2012, 01:54 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    when they jump to save themselves yes I will follow
    30 May 2012, 02:03 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    not about how much money is spent about how much usless paper has been got rid of
    30 May 2012, 02:05 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    Everythingi have read is that China is not getting rid of the dollar. They just are not buying more. There is a HUGE difference. Really all its saying is that China was not diverisifed in its holdings and went all in on one thing. Not sure if that is the type of model that you want to base your own off of.
    30 May 2012, 02:09 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Matthew maybe you could investigate how much the US owes the Chinese.

     

    Do you know how much the US is in debt over all?

     

    http://bit.ly/5BsyVl
    30 May 2012, 02:13 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    oh wow look at those big scary numbers. Clearly that is the end of this debate. You can't argue with an updward counter!
    30 May 2012, 02:16 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Obama want to slash the US dollar to 50 cents in the dollar.....but maybe the US dollar is only worth 30 cents. Why would would anyone in their right mind want to hang onto to somthing that has the potential to loose 70%

     

    http://bit.ly/5BsyVl

     

    Bernanke keeps on printing it continues to loose its worth
    30 May 2012, 02:20 PM Reply Like
  • Matthew Lewis
    , contributor
    Comments (343) | Send Message
     
    China has over $1 trillion in US treasuries. How exactly does that make them good investors in the eyes of the gold crowd?

     

    You're making the argument that since China is buying gold, it is a good investment....does that not make treasuries a good investment using the same logic?
    30 May 2012, 02:25 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Mmmmmmm well I dont understand the sinacism. As somone clearly has to pay it back or are you of the belief you can print a valuless item out of thin air forever.

     

    If those scarry numbers stopped going up this very sec it would take longer then a thousand years to pay back.......gee thats somthing Im sure the generations of the future will really enjoy........oh but wait, how will they do that if the US dollar deflates to say 50 cents but the (scarry numbers) debt stays the same. Oh well maybe logic is a thing of the past.
    30 May 2012, 02:32 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    Goldmember steve: Are you looking at the actual us dollar markets, including the bond market, before making statements like that?
    30 May 2012, 02:44 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    How much longer do you think pieces of paper called treasuries which are basically printed in good faith by the Governments will be viewed as somthing of worth.

     

    Again what backs up the American dollar ? Supposedly gold.
    Why does Bernanke and Obama continually have to print, print, print and print some more the way they print there isnt enough gold to back up the dollar hence they will have to devalue and as for treasuries well you can only bluff for so long. As for gold it still will be there after paper, all paper fails.
    There is one thing I know for sure a strong cup of coffee will always beat anything paper and or gold, Im going to have one so enjoy your Mad Hatters Tea Party.
    30 May 2012, 02:50 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    You mention logic yet everything you have said here is nothing more then repeating worn out end of the world talking points.

     

    A thousand years to pay back the debt? You don't even know how crazy you sound.
    30 May 2012, 02:54 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    "Again what backs up the American dollar ? Supposedly gold."

     

    I see the disconnect. I thought you were someone who knew we were off the gold standard. My mistake. I'm done here.
    30 May 2012, 02:57 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Oh dear. Have you missed the whole point? Not about the gold standard, about paying your debts when your bits of paper are worthless. Not about the end of the world, although Im sure Europe at this time would disagree.

     

    Mmmmmm the smell of coffee calls enjoy your day, hey and remember to smile :-)
    30 May 2012, 03:09 PM Reply Like
  • Matthew Lewis
    , contributor
    Comments (343) | Send Message
     
    You couldn't pay me to own treasuries...but why do the Chinese own so many if they are such good investors?

     

    Just like Buffett said in his Fortune article from February, you shouldn't hold cash. I agree that the government will continue to dilute its value. I don't agree that the best way to hedge/profit against that is to buy a yellow metal that has little to no utility.
    30 May 2012, 03:16 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Matthew this may be of interest

     

    http://bit.ly/JQKkG1
    30 May 2012, 03:29 PM Reply Like
  • gh1616
    , contributor
    Comments (452) | Send Message
     
    kmi...."By the time my paper has lost its value I'll have other paper......"
    exactly how Turkey has become economically viable; eliminate zeros from its currency revaluation. Of course it wiped out their middle class...just collateral damage of course. But whose counting right!?! Your solution will be blood-in-the-streets painful.

     

    When the pols target you to save....be careful, very careful what you ask for. Like the Great Society saved the poor!!
    30 May 2012, 09:53 PM Reply Like
  • kmi
    , contributor
    Comments (4023) | Send Message
     
    gh161 said "When the pols target you to save....be careful, very careful what you ask for. "

     

    Let them.

     

    I'm diversified. Are you?
    31 May 2012, 09:52 AM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Have agood day kmi

     

    http://bit.ly/MUUSDn
    26 Jun 2012, 08:51 AM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Hve a good day Rhianni

     

    http://bit.ly/MUUSDn
    26 Jun 2012, 08:52 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    The dollar has been declining in value since we got off the gold standard. Not sure why you are blaming Bernanke as if he's the only Fed chairman who has been easing. Also remember that a weak dollar has driven US exports.
    26 Jun 2012, 10:32 AM Reply Like
  • WallStreetDebunker
    , contributor
    Comments (2432) | Send Message
     
    "Civilized people don't buy gold" --Charlie Munger

     

    My guess is that Charlie's personal assistant wasn't around to work the TV recently, and Charlie accidentally tuned into MTV and saw some rappers with full grills and neck chains for the first time.
    30 May 2012, 12:25 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    While the fools in Government's and Bernanke continues his spin they will continue to print dollars, the general puppet public run to the pecieved safe American dollar from Europe, it will be too late when they relise the American dollar is also worthless....that is when panic hits and gold and silver will skyrocket. When Europe crashes it wont take long then for the USA to follow, all because of greed and mismanagment. Mean while the East sits back and watches quietly. All though China cant hide the fact it has bought billions and billions of physical silver and gold, now there is a sign to follow if any.
    30 May 2012, 12:34 PM Reply Like
  • john12345
    , contributor
    Comments (322) | Send Message
     
    Questions for the Anti Gold crowd:

     

    If gold was $50 per ounce would you buy or sell? Why??

     

    If gold was $3000 per ounce would you buy or sell? Why??

     

    At what price in between $50 and $3000 would you indifferent to purchase or sell?

     

    Hint: no matter what price you answer you are implicitly agreeing that gold has value. The argument should really be that the current market price may not be right for you now to either buy or sell. Not that gold has no value.
    30 May 2012, 12:50 PM Reply Like
  • Matthew Lewis
    , contributor
    Comments (343) | Send Message
     
    Exactly. Well said. The gold crowd believes owning gold is a good idea no matter how high the price goes. That is simply not the case.
    30 May 2012, 01:01 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2006) | Send Message
     
    Gold has lots of potential and profit for trades. It does have value as an electrically conductive shiney yellow colored metal. Who exactly is saying it has no value? No value as in no value what so ever not misquoting Buffett.
    For investments where it is sitting in a vault for years? It doesnt do anything. At some point it has to be converted back into money to be traded for food, pay your mortgage etc.
    30 May 2012, 01:20 PM Reply Like
  • john12345
    , contributor
    Comments (322) | Send Message
     
    I'm not sure what you are advocating but Buffet's company doesn't pay any dividend so you have to sell shares to get cash to buy food, mortgage, etc too. Likewise, yes, it's a shiney metal. And a stock position is either a book entry in cyber space or a piece of paper in your vault. All of these "investments" need to be converted to trade-able form to be "useful".
    30 May 2012, 03:33 PM Reply Like
  • WallStreetDebunker
    , contributor
    Comments (2432) | Send Message
     
    "Civilized people don't buy gold" --Charlie Munger

     

    Yeah, and we don't associate with lawyers either. (Munger started his career as a lawyer.)
    30 May 2012, 01:28 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    http://yhoo.it/JQJqJy
    30 May 2012, 03:23 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    I think the point Buffett was trying to make is that you buy gold in hopes that someone else will buy it off of you for a higher price. While you are holding it, it does NOTHING. In the meanwhile, a share of Exxon Mobile (which Buffett referenced) is owning a piece of the largest oil company in the world that is actually PRODUCING something.

     

    PRODUCTIVITY.

     

    How do you value whether gold is good at a certain price? You really can't....which is why Buffett and Munger avoid it (they don't invest in what they don't understand).

     

    Also, didn't the statistics in Buffett's article basically squash the notion that gold is a great investment?

     

    http://bit.ly/M8k7rA

     

    Pretty sure I can read...S&P500 > gold.

     

    Berkshire stock (since 1965) > S&P500 > gold.
    30 May 2012, 03:29 PM Reply Like
  • gh1616
    , contributor
    Comments (452) | Send Message
     
    idmy...."Pretty sure you can read"..............then better go back and re-read gold performance vs S&P, & BRKA/B over the past decade!! Not even close!!
    30 May 2012, 10:02 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    Cool, way to nitpick the past decade. How about 1980-2000 when stocks KILLED gold?

     

    Here's gold vs S&P500 1965-2011...

     

    http://bit.ly/M8k7rA

     

    Btw, a $100 in Berkshire in 1965 would be worth over $100,000 today. Any arguments?
    31 May 2012, 01:13 AM Reply Like
  • gh1616
    , contributor
    Comments (452) | Send Message
     
    idkmy............."Ber... in 1965 would be worth..........."

     

    Of course there's an argument, yours is a meaningless comparison. Who cares what happened since 1965 unless you have a time machine! Using you thesis I could say; an investment in Adams Express closed-end fund, (in the 1929 survivors club), today would have outperformed any other investment over 83 plus years. So what! one could rightly say.

     

    BTW I don't think a decade performance is a "nitpick" either. Morningstar would agree as a 10 year performance is considered long-term! I stand by my comment that gold today should be a part of portfolio management to hedge risk.
    31 May 2012, 10:01 AM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Yep......You miss the point.
    31 May 2012, 10:11 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    For someone who is against the paper system and predicting its total collapse, why are you quoting Morningstar? A little ironic isn't it
    31 May 2012, 10:31 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    You're right, a decade performance isn't a nitpick, but you conveniently picked the recent decade when gold happened to beat stocks. I chose a longer time frame since my idea of long term investing is > 10 years. The real question is did you buy gold in 2000? Or did you buy a high flying tech stock? My guess is the latter.
    31 May 2012, 10:33 AM Reply Like
  • gh1616
    , contributor
    Comments (452) | Send Message
     
    idkmy........"against the paper system and predicting its total collapse"

     

    WTF are you talking about? Where did I say anything like that?? Whats ironic is your nonsense comments on an investment website!!
    31 May 2012, 07:59 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    Sorry, I had mistaken you for one of the fearmongerers on zerohedge lol.
    31 May 2012, 11:43 PM Reply Like
  • mooann
    , contributor
    Comments (4) | Send Message
     
    To: Goldmember Steve: I have been into gold for 10 yrs. and I am
    greatful for getting out of all the csco's - intels - and many other tech
    stocks I had been playing since 1997. I am very happy to let my
    shinny yellow coins sit knowing that I will be able to go to my "yellow
    lockers" when I need money for food!!!!!! I do not plan on having
    any discussion with those who do not see what is happening in this
    world ------ nothing is forever but right now you have to be able to
    see what is value and that is GOLD.
    30 May 2012, 03:29 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Oh look mooann, interesting name by the way :-), I enjoy a little healthy discussion its good for the mind its 5.46am here in Australia and Ive been up all night watching computer screens so debate keeps one awake, but it good to know there are many like minded sensible peoples out there. Take care.
    30 May 2012, 03:50 PM Reply Like
  • mooann
    , contributor
    Comments (4) | Send Message
     
    Hi----It just felt like someone needed to just plain agree with you!!!
    It is 4:10 p.m. here in Florida and I am trying to keep up with the AU
    market as well as the French Open. I feel that gold will be my
    trade for at least 4 more years! It is always a challenge when
    taking a new path----Buffett and Munger are long term players & that
    is why they feel as they do-------I do not believe that long term is to
    anyones advantage. Sorry for the name----I used to be fat & family
    called me Moo-------middle name is ann-----!
    30 May 2012, 05:02 PM Reply Like
  • Denny_Chasteen
    , contributor
    Comments (700) | Send Message
     
    Gold and silver represent real and true currency that will retain it's value over long periods of time. True, you can't eat it. True, it does not actually produce anything. True, it does not pay interest. So what? People who keep making these points must be dumber than dirt. Throughout all known history and over eons, eras, periods, and epochs gold has been a solid and reliable store of value. Over the same span of time, currencies and come and gone. Governments have come and gone. Only gold and silver have remained steadfast in value. How hard is that to recognize? Jeez!!!

     

    Right now gold value is tracking what is the most risk laden currency on earth: the Euro. Really strange because there are few things more solid than gold and few things more risky than the socialist based Euro. This is a very short term correlation and will break down soon. Gold will skyrocket in value relative to all types of bonds and paper currencies.
    30 May 2012, 05:10 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    So you are disagreeing with the fact that since 1965, the S&P500 has outperformed gold?
    30 May 2012, 05:15 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Denny only those with OPEN eyes can see. :-)
    31 May 2012, 02:56 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    Obviously yours aren't open!
    31 May 2012, 09:10 AM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    What you don't seem to understand idkmbffjill is the paper system is about to implode all those gains you talk about are all set to disappear but guess what physical gold and silver will still be there.

     

    Just wondering have you been watching whats been happening in Europe, just curious.
    31 May 2012, 10:16 AM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Only a closed mind or wanna be wishful thinking would make a statement like that.
    31 May 2012, 10:17 AM Reply Like
  • john1940
    , contributor
    Comments (235) | Send Message
     
    Believe it or not, just about everything has some commodity value. Sawdust, waste grease in restaurants, used lumber, waste paper, sand, dirt, etc all can be converted into cash. You could barter with them although the bid/ask spread and product specifications may be all over the map.

     

    The point though is that all this arguing about what gold is or isn't is a major waste of time. For want of another word, it's a commodity. It has value. The value fluctuates. Just like stocks, bonds, women's hemlines, and just about everything else.

     

    As Rodney said: Can't we all just get along?
    30 May 2012, 10:37 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    Too bad Buffett never said hold onto cash.

     

    In fact, in his article, he mentioned:

     

    "The major asset in this category is gold, currently a huge favorite of investors who fear almost all other assets, especially paper money (of whose value, as noted, they are right to be fearful)."

     

    Sorry Einhorn. You make a stupid point. Furthermore, to the poster above who mentioned Berkshire holding cash, do you know anything about how insurance companies work? They can't invest all their float, they need liquid cash on the spot when disasters happen, and they have to pay claims, especially since Berkshire's reinsurance division, run by Ajit Jain, insures freak incidents that are statistically very unprobable but could still happen and demand large payouts. Furthermore, I believe are regulations regarding how much liquidity insurance companies must hold (no, for quick instant cash in this case, stocks don't count as liquid assets)..someone correct me if I'm wrong, but I'm pretty sure Buffett has mentioned it.
    31 May 2012, 01:29 AM Reply Like
  • Denny_Chasteen
    , contributor
    Comments (700) | Send Message
     
    The only Buffet I listen to is from Margaritaville. The only Buffet rule I support is: "It has to be five o'clock somewhere."

     

    Fine if the S&P has gained more than gold since 1965. That is a good thing. I like to see companies grow and prosper. I am not down on the equities market. I invest and trade stocks on a frequent basis.

     

    For me alone, I would not buy and hold any currency as an investment or long term store of value. Same goes for bonds. Bonds are just a promise to pay back a loan in currency. Gold is much better for that purpose. That's just me.

     

    I do have a few Series-E savings bonds. I purchased one per month for 25 years at work because I was the "bond drive chairman" one year. LOL. These are paying 1.4% to 5% and the interest accumulates tax free. I have thought about trading them for silver, or at least the ones paying only 1.4%, I just have never gotten around to it.

     

    I am calling out people for making points about gold and silver that are not relevant to it's value like: "gold does not produce anything" or "gold does not pay dividends or interest" True, but it doesn't matter. It's totally not relevant to the value.

     

    I wish more people would give gold it's place and stop hating on it. I also agree with the comment: "Why can't we all just get along."
    31 May 2012, 12:05 PM Reply Like
  • Matthew Lewis
    , contributor
    Comments (343) | Send Message
     
    Idk - I think we are wasting our time.

     

    As you mentioned Buffett specifically says you SHOULDN'T hold cash for investment purposes. However, anytime somebody mentions an asset class that may be a better investment for the future the gold bugs heads explode and they talk nonsense that has nothing to do with the discussion at hand.
    31 May 2012, 01:58 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    Hey Matt, I guess all these gold bugs don't realize that if the "fiat money" paper system they deride so much collapses and a "global panic" occurs, no ones gonna give a shit about their gold. Guns and food will rule, so will exercising any means necessary to obtain these two.
    31 May 2012, 09:16 AM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    wow thats intelligent way of thinking
    31 May 2012, 10:19 AM Reply Like
  • remurraymd
    , contributor
    Comments (2287) | Send Message
     
    Go to Yahoo finance back test (GLD) v. (http://bit.ly/HTuXhi) (http://bit.ly/nAQRVs) (http://bit.ly/KeI2oF) Any idiot will see that Gold crushes all over time by 200-400% in 5 years 5000% in the last 50 but volatile.Einhorn is right and Warren/Charlie are wrong. It is a great inflation hedge though not a "safe haven" folks do dump it with equities in market crashes so it will buffer and improve folio performance but will not protect individual stocks.
    31 May 2012, 05:04 AM Reply Like
  • Matthew Lewis
    , contributor
    Comments (343) | Send Message
     
    Once again, Buffett never said to own treasuries and cash versus gold. Go read the article again. He says stocks will outperform gold over the long term. This has happened over time.
    31 May 2012, 08:52 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    Gold crushes all? Do you any of you know how to read? Or are you too busy stocking your pantry with gold and guns?
    31 May 2012, 09:13 AM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Its picky so called wanna be superior intelllll ectttualls like you that have got the financial world into such a mess may be if you and people like you were not so narrow minded and didn't look how others spell a word and looked about saw the bigger picture maybe things in the world would not be as bad as they are. Just sayn

     

    Mmmmmm guess you will come back with rhetoric....know the type
    31 May 2012, 10:27 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    hey steve, whats your smart idea? lets all go back to the gold standard! maybe do a little history and read on the negatives of the gold standard before you preach about it. I've got nothing against gold, but I agree with Buffett that productive assets like OWNERSHIP IN COMPANIES THAT PROVIDE A PRODUCT/SERVICE will beat gold over time.
    31 May 2012, 10:30 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    and you will keep fearmongering....know the gold type.
    31 May 2012, 10:33 AM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    id if I was smart I would sit where Bernanke sits cause only INTELLIGENT people like that get to make decisions for us all.
    My whole point which I say yet again paper is just that paper which has been manipulated for too long and that worthless paper is about to collapse, that's why dare I say it, certain Governments world wide notice I said Governments (plural) are scrambling to purchase physical gold and silver. The INTELLIGENTS of the world have got us in the .#$@% and they took us away from the gold standard, but if gold has lost its importance then why is the accumulation world wide now so important?

     

    I'm not debating with you about what makes money in the short term all I'm saying those things will soon disappear......surely you are watching Europe and you do realize what is happening there will affect you and me and the beloved paper share market they cant keep plugging the holes when the dam wall is about to bust. Anyways people can only believe what they want to believe that's why we all have freedom of choice ......well for the time being anyway. Take care id.
    31 May 2012, 11:09 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    steve, thank you for the message. I understand what you are saying. I see what is unraveling in Europe.....this is why I am long volatility lol.
    31 May 2012, 11:55 AM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Thought U may be interested id?!

     

    http://bit.ly/MUUSDn
    26 Jun 2012, 08:56 AM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    Europe unravels just that little bit more America panics just that little bit more what happens.........a scramble to gold and silver.......nope its not important!!!! :-/ (sinocism for those just wondering :-))
    2 Jun 2012, 07:12 AM Reply Like
  • ConservativeOutperformer
    , contributor
    Comments (558) | Send Message
     
    The difference between David Einhorn and Warren Buffett....

     

    David Einhorn follows everything Warren Buffett says and tries his hardest to come up with witty responses so people will pay attention.

     

    Warren Buffett has never heard of David Einhorn.

     

    Good luck!

     

    P.S. "A witty statement proves nothing" - Voltaire
    3 Jun 2012, 02:05 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    Amen! Einhorn is a hedge fund manager who likely wouldn't have a job if his short term performance wasn't good. Buffett is the CEO of a multinational Fortune 500 corporation who has a MUCH larger time frame he makes decisions for than Einhorn.
    3 Jun 2012, 02:31 PM Reply Like
  • mbcy
    , contributor
    Comments (859) | Send Message
     
    It would be naive to believe that Buffett's statements are aimed at the welfare of all people who listen to his advice. :-))

     

    P.S. "Paper money eventually returns to its intrinsic value: zero." -- Voltaire
    4 Jun 2012, 07:37 PM Reply Like
  • goldmember steve
    , contributor
    Comments (63) | Send Message
     
    And I rest my case :-)

     

    http://bit.ly/MUUSDn
    26 Jun 2012, 08:53 AM Reply Like
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