Warren Buffet is one of the wealthiest people in the world. He currently has a net worth of $75.6 billion. This makes him the second richest individual globally after his close friend Bill Gates. Warren lives in Omaha and is the Chief Executive Office (CEO) of Berkshire Hathaway. He made his fortune in the various stock and commodity markets of the world. By applying his own investment strategies, Warren is able to create value for himself and his shareholders. Known for his method of value investing, he is an investor who believes in growing your wealth graually over many years. Read on to learn about some Warren Buffet quotes on gold investing.
Memorable quotes from Warren Buffet on gold investing
One of the precious metals which you can invest in today is gold. This is the best performing one that you can get. It’s value rises constantly and it is an asset which is acceptable for purchase in any coutnry in the world. Gold is an effective way to protect your investment from bad economic conditions.
Warren once quoted that we extract gold from mines only to construct new holes, store it there and pay for its security. He proceeded to indicate that anyone would wonder what we are doing. In this quote, Warren seeks to indicate that he does not think gold is a utility investment. It may not do anything for you except keep your investment portfolio protected. If you are searching for a safety instrument to make, this is the one.
He also said that commodities have one unique problem. When you buy them, you simply hope that someone else will buy them in future for a price that is more than what u paid. In effect, the gold does not do anything for you but provide you with an asset that you can only hope will rise in value. By saying this Warren seems to indicate the lack of active utility of gold in the vibrant day trading market that he is used to. From an active trader’s point of view, gold doesn’t seem to do much but sit there. It may not yield you some daily gains after sale and purchase but gold is essential in securing your portfolio.
Warren is known for saying that the main motivator of gold purchasers is that there will be more timid traders in the market over time. They will hold their assets and the value of the gold will increase faster. Over the last ten years, this belief has held true. The price of gold has increased and attracted more investors in the bandwagon. As an active, involved investor, Warren does not believe in the bandwagon mentality. Thus, he advises you buy gold certificates or gold-backed stock instead of this precious metal. These ones offer more rapid trading flexibility than solid gold.
Conclusion
One of the most stable, attractive and valuable metals in the world is gold. It has the legendary nature of being inflation-proof and also increases its value over time. These qualities are not enough for Warren. In his quotes, he indicates that stocks are a better investment than gold. Ultimately, the choice belongs to the investor who is buying this precious metal. Warren’s opinion above can help you to know what is right for you.
