From todays http://dailyreckoning.com
The beat goes on! Here’s the world’s most successful investor talking about our favorite metal:
Warren Buffett on gold:
“You can fondle it, you can polish it, you can stare at it. But it isn’t going to do anything.”
Except protect you from losing every dime!
“Gold really doesn’t have utility,” the 80-year old told shareholders at Berkshire Hathaway’s annual general meeting. “I’d bet on a good producing business to outperform something that doesn’t do anything.”
Yes, so would we. And we’d usually rather have a jacket from Ralph Lauren…or Brooks Brothers…than a Life Jacket. And we’d usually like to see a pick-up truck or a delivery truck in our driveway, rather than a fire truck. And we’d much rather spend the night with Julia Roberts stark naked than with a heart surgeon in full medical regalia.
But hey…guess what? There’s a time and a place for everything.
Why did God bother to create gold, anyway? Is it just for ornamental purposes?
Historically, gold has had one other very important use. And, while most of the time it is useless, occasionally it is indispensable. Most of the time, gold is as dumb and lifeless as a joint session of Congress. Buffett is right; most of the time, it’s as useless as a seat belt.
But there are times when a common lifeboat has greater utility than a luxury sailboat.
Could this be one of those times?
Read more: http://dailyreckoning.com/when-investing-in-gold-is-a-good-idea/#ixzz1LOk5Mw5q