Last week we saw that the American public thought gold was the safest investment.
Now we see three of the richest guys in the world essentially say that gold is garbage.
Warren Buffet says he doesn't invest in gold, only in "productive businesses."
Charlie Munger--Buffet's long-time partner--says, "civilized people don't invest in gold."
And Bill Gates says this:
|"...you know, hey, there's an asset that's not doing anything for the citizens and then you— you know, because it's purely psychological it's not like people would say, `Oh, well, when it gets to $800 an ounce people will buy four times as much jewelry.' There's no— nothing that steps in as a buyer at any price. It's just purely `Oh, other people think it's— other people in the future will think it's worth more than it's worth today,' which, you know, if you think the world is scary and people are going to panic, I'm not saying that theory doesn't exist, but there is no floor if ever people got a view."|
So, which is the smart money? The three super rich guys or the public? Hint: in 2006 the public went crazy for single family homes.
I totally agree with Buffet, Gates and Munger. Hands down.