Warren Buffett: Why Gold is a SILLY Investment
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- Опубликовано: 19 авг 2020
- In this video, Warren Buffett talks about why he thinks buying an unproductive asset is a bad idea in the long run.
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Buying gold is not an investment. But it is a type of saving which is very effective.
Store of value*
This exactly!
@@sgocllewsgocThis is true, as long as enough people believe in the intrinsic value gold has, it generally will protect you from inflation over time. An ounce of gold in 1927 would probably buy about the same PHYSICAL GOODS as an ounce if gold would today.
However, mere protection against inflation is not what Buffet is aiming for. He is VERY correct that Berkshire Hathaway’s stock value has well outperformed the price of gold during the company’s existence (this can’t really be argued). If the U.S. still used the Gold Standard, you could argue that gold will always have intrinsic value cause full faith and backing. But without this, all Warren sees is Bitcoin in a different form.
And if one day, a lot of people woke up and decided, for whatever reason(s), that hold has no intrinsic monetary value, all you’d have is a nice looking stack of gold paperweights.
@@sgocllewsgoc true, you can sorta imagine owning a “precious” metal to be like co instantly buys/selling treasuries but with a bit less risk on inflation exposure and more risk to net rate of return. Remember , there is nothing stopping gold or silver holding value… well, we buy and trade commodities in games like Elite Dangerous. I think most people are just too local ficus led to think about what things are worth to bed city over
Like Warren Buffett said it's better than cash However gold doesn't produce an asset , you're just hoping that somebody else would pay more for it so the price can go up
All the headlines saying that Buffett bought gold, when he was buying a gold mining company which is a company that has cash flow and pays a dividend, while gold does nothing.
When gold prices go up, gold mining companies go up much more than the price of gold itself. However, when gold prices go down then the prices of gold mining companies go down much more than the price of gold itself. There's absolutely no reason whatsoever to buy a gold mining company if the price of gold is going to stay the same or go down.
Also note that he sold all of his stocks in banks to then buy a gold related investment; that's a clear sign he thinks things are about to go south.
@@LawlessNate He still isn't hypocritical. He believes that banks will be unproductive at least for a while. Holding lots of wealth in gold is a waste unless you think that there is very high risk for other things. Holding some is a good hedge.
LawlessNate do you really think a guy worth 80billion dollars is concerned about his wealth? Did you not even listen to what he said in the first portion of the interview? Good is a FEAR INDICATOR. What good does gold have if the world blew up and the current world went back to the stone ages? Firstly, wouldn’t happen. Secondly, cash would still be of value, unless the US was being overrun by China. Thirdly, gold is literally good for nothing in a normal every day sense. You can’t eat gold. You can’t make money with gold. You can’t burn gold for warmth. The value of gold is determined by the people who buy it. If the world implodes into anarchy, I’d rather buy 5 cows over a bar of gold.
@@Sffker One doesn't get to be worth 80 billion dollars by not being concerned with their wealth.
"What good does gold have if the world blew up and the current world went back to the stone ages?"
Gold would, at the very least, be worth its weight in gold. Historically, gold doesn't lose its value in times of crisis.
"Firstly, wouldn’t happen. Secondly, cash would still be of value, unless the US was being overrun by China."
Crisis does arise in the real world. Not on an apocalyptic level, but it does happen. Also, fiat currency has no inherent value whereas gold does.
"Thirdly, gold is literally good for nothing in a normal every day sense. You can’t eat gold. You can’t make money with gold. You can’t burn gold for warmth."
Fiat currency doesn't either. However, the only value fiat currency has is that a government suggests that it has value and, for a short while, people believe that it does. If and when that government ends, so too does the value of that currency. Gold, on the other hand, is always valuable because people are always willing to accept it as no one has to convince anyone else that it has value. It has been used as money for over 6,000 years. It's currently being used as money today. It will continue being used as money for the rest of humanity's existence. It is the perfect money because it's finite, scarce, and has the appropriate physical properties. The only other substances which can do the same as gold are silver, platinum, palladium, and rhodium.
"If the world implodes into anarchy, I’d rather buy 5 cows over a bar of gold."
If you're trying to get the guy with cows to give you five and you don't have anything he needs that you can barter with then your best shot at getting those cows would be that bar of gold. Really, though, you wouldn't need a large bar. A few coins would be worth a few cows.
Shuffles That’s right.
I rather own gold than have paper money
The billionaires who run the world have paper money... The midwits who own gold tell you to sign up to their newsletter on RUclips ads.
@@josuebarboza9809 I guess central banks the world over are full of mid wits.
@@jamesdoe3713 there is no evidence of that.
They stock pile land and real estate, and when there is downturn they double down on the economy, buying companies for pennies on the dollar.
If true economic collapse would happen, which your type has been predicting for decades, then bullets, guns and food will be far better stores of value than a shinny metal
But you need paper money to buy in the grocery
Gold is a commodity. Think beyond that.
It’s not an investment it’s a long term savings / insurance asset. Zero counterparty risk and anti debt
for me personally gold has no value. I wouldnt buy it just because other people say has value or becasue currency is backed off by it since most money nowadays is digital. it hardly makes a interest in value over time. and its a fixed dollar investment.
He bought into a gold mining company not just gold itself, great play if you really know what's going on
The price of gold has collapsed in the last 6 months. Please tell us what is "really" going on?
@@charliewalter1274He may believe that a good gold mining business will be profitable over the long term, especially a good business like Barrick.
@@charliewalter1274 This aged poorly lol. ATH right now lol.
They don’t want you to own gold. Gold is gold to store wealth
Who doesn’t want you to own gold? His point was very clear… buy an ounce of gold, 100 years later you have an ounce of gold.
Buy 100 Acres and let it produce food and sell it, how many ounces of gold can you buy over 100 years?
So society has collapsed, food and water are scarce and you have a gun to your head. How does gold help you in that situation?
Preeecisely.
Makes total sense and Warren explained this faster and more sincerely then a full year of economics professors.
Where did you go to school?
After watching this video, I am going all in on gold.
2 months ago, you might have gotten in at a good price before this recent pump. But you should definitely sell the top of this current pump and diversify out of gold lol.
Invest in blockchain, not necessarily BTC as its basically digital gold at this point. but definitely DeFi ecosystems running virtual machines with smart contracts deployed could be a wise move. just dont buy at an ATH in the case we may be in a bubble, and in the second case you dont want to have to hold for a decade to see ROI.
but many PoS networks will be akin to holding gold, but getting paid more gold in dividends.
unless of course you were just joking then by all means, rock on lol. hard to tell over the internet. but i always like to give my two cents in attempts to help people. Decentralization will be the future, that much is certain. End all corruption!
@@RyukyuStyle My comment was the most stereotypical trolling I could come up with for the comments of this video. On a non-trolling lvl, buffet is the man 💯
@@RyukyuStyle boy, did this age like milk!
@@RyukyuStyle gladly he did not invest in cryptocurrency :D
What about all In on silver??!
Gold and Silver are assets that go up in value, especially during inflation.
And when banks fail, which they do from time to time, instead of instantly losing your savings, you can sell or trade your metals.
That is why you have to have gold !!! Gold literally saves families. There are thousands of examples of such in middle class Indian families when the ladies of the house saved the family by selling their gold.
@@SchoolOfUnlearning3buying a share of a business will give u money back whereas gold will give u nothing, therefore u will have to sell the same gold and end up with nothing as the money earned from selling the gold will finish in the things spent after selling the gold. In the end, the business will grow and expand but the gold will remain the same. If you sell the same business after 50yrs, u will end up getting 500,000 times ur inital investment as compared to Gold which will remain only 1 ounce! The business will produce u lots of ounces in the future as compared to the same 1 ounce that u bought initially!!!
What the hell bank do you have your money in? Your deposits in any bank worth its salt are guaranteed by the Federal Reserve up to $250,000. A bank going bust means you get your money back unless something truly dire has happened.
You do realize banks are FDIC insured, right? You knew that, didn’t uou? Of course you didn’t.
The real “gold” here are warrens comments on predictions and productive assets!
I'm agreeing with Warren on this one. However, I find it hard to understand his logic on bitcoin because silver is so low. He says BTC is worthless - I'm with him there but why on earth is it $20k for 1 digital coin when silver is much more useful and it's only $20 per ounce??
@Sgoc Llewsgoc I do agree. I think that suppression comes with usage as well. For example silver is used in electronics. If it was priced at 3k per oz how much would the electronic item cost to produce? I do believe some cryptos have a right to be high priced eventually like the ISO compliant ones (XRP XLM XDC) because they have a use with the new financial system but Bitcoin doesn't get used for anything so 20k for that is ridiculous.
I fondle my gold
😂
Me too
And caress it
Summary- Warren agreed that paper money is going to shit. But he advocates buying businesses and not gold to hedge.
Charlie agrees Gold is a good bet for transferring wealth in case of stuff like hyperinflation, war etc. from one currency to another.
Gold isn’t an investment. It should be compared to cash not stocks.
Barrick gold is still a producing asset
One of the best things I learned from Buffett is the importance of buying productive assets. Gold just sits there why you own it. On the other hand, businesses and real estate produce cash.
If it's unproductive asset why did he just poor billions into it. Gold is a very important part of any well diversifed portfolio.
Nathan Glessing he bought a gold mining company, not the asset itself.
Nathan Glessing buying gold to store value instead of owning dollars is different to buying gold as a long term investment
@@InvestorCenter To be honest, we don't know who in Berkshire bought it. It could have been one of the 2 money managers.
@@InvestorCenter When you buy a company don't you buy it's gold reserves and inventory too ?
I think he is so relaxed and detached as a good thing.
Gold is valuable.
It just doesnt "generate or produce" income.
It goes up in value.
Paper money doesnt really exist.
Put £100 in the bank.
10 years later its worth less due to inflation, even with interest etc it will never ever go up.
You buy £100 of gold.
Have a look 10 years later.
Now imagine You buy £100 of good stocks.
Warren Buffett in this video is not comparing gold to “paper money.” He’s comparing gold to productive assets.
@@thedreamer8151And what is a good stock? What's good today may not be so good tomorrow.
Gold is a bad investment but the best store of value, that's why the spotlight's on gold. If you have no idea on what to invest, then convert all your cash to gold to protect it from inflation at the very least.
That's horrible advice
Dont convert it all but yes you are right in inflation gold is the best asset
Gold isn't an investment it's money. Have fun sitting on cash
7:25
It’s weird cause he is buying gold now. I hate gold with a passion lol, cause it doesn’t pay you anything. I watched this a long time ago and ever since then I haven’t bought gold.
gold mining stock not the gold itself
Study more you don't know what are you talking about
@@vaultvon2126 I’ve recently changed my perspective I’ve bought some mining companies because they pay you dividends and such. Before I wasn’t comfortable with the volatility but, I have recently added a bit more mining companies for diversification.
@@canadianinvestor3926 sorry to sound rude but you still did not get what warren is telling us.
Only invest in something that you fully understand.
If you bought those mining companies only for the dividends but not really understanding the business that they are doing. You're basically getting a random person you don't really know the background of to drive the plane you are in.
Eventually crashing the plane.
On the other hand,
Find someone who is licence and a master in handling a plane is analogical to invest in something that you entirely understand..
For me that would be AAPL. I love tech ever since and apple is doing a great job selling there product
I think it is for the birds now silver....can anyone explain what he meant by this
Every device that is being used to watch this video uses gold and silver 🤔
oh yeah, let me just go and buy 100 acres of farmland. simple!
If i save money im hoing to lose out so buy gold and silver then sell it and buy a berkshire stock instead of gambling
He makes a world of sense , Note to self do not invest my millions in Gold (Sarcasm) Lol
Gold and Silver is a sure way of saving against a 'fiat' dollar. If, and I believe it will happen, that the Dollar crashes, what will you be left with? Paper money can become worthless... and whilst you have an idiot in the W.H. it would be prudent to hedge your bets.
Gold produce money as well...by taking the advantage of increasing and decreasing prices..sell and buy u will get profits...
Then you can just trade gold digitally. He's talking about owning real gold as an investment. Its more of an insurance
Estudio de los mejores con todo el respeto pero su vida y su tiempo simplemente son gias ami vi vision gracias por todo ⚡👁️
Gracias atos pero hay numeroros que con las personas adecuadas se pueden lorar porlomenis ala mitad del tiempo prodisticado pero mejor mucho antes delo provisto con maestros junto a su aprendis⚡
Bad investment?? He's so wrong, I bought all my gold holdings back in 1987 for $112.50 per oz. I'll let you know my holdings today is $355,000.00, not a bad investment.
Just cause he is rich doesn’t mean he knows everything. When the dollar falls whats going to still hold value ? Not you stocks pal
The un recons there's only about 60 harvests left so I guess the farm land won't be worth much after that
Of course Warren would say that because if many people buy gold, then the value of gold will go down, meaning he won’t earn as much money 😂. People aren’t stupid. Gold never loses its value and is a safe bet against inflation.
Not losing value is good. Safe bet against inflation is also good. But what’s missing is the productivity he talks about. Over a significant period of time like 20 years, a productive asset generates a lot of wealth. So, sure, buying gold and holding onto it is better than spending the money on a flashy sports car which will depreciate over time, but it’s not as good as a sound investment which makes you notably richer in the end.
By 00:00:20 at least one inaccuracy...$20 for an ounce of gold when Buffett & friends bought Berkshire? Not the fixed $35?
gold is not an investment. its a metal you dig out of the ground.
Based
I always love it when Warren sh*ts on gold 😁
I always love it when Warren shits out gold 😉
There is this word called famine.
I bought gold when it was $400 an oz. Is that a bad investment? Suppose I put that money in CDs or Bonds. . . . even some stocks. Would that have been a better investment? Suppose I kept it in cash. I submit that the Gov. does not want you to own gold and Buffett has close ties with the Gov. Something to think about. Why are central banks all over the world stockpiling gold? What does he know that they don't?
If you had invested in in Bershire Hathaway stock, you’d have A TON more, but these are very different things. BH is an investment, gold is a store of value that tends to at lest match inflation over time.
What people forget is that, outside the last couple years due to a variety of reasons, inflation in our modern economy generally is relatively low, usually peaking at 3, maybe 4%, then dropping back to 2, then … it basically sticks around 2-4% a year. BH has grown MUCH faster than that, but stocks are risky, thus you need a better ROI to justify them.
@@stevendebettencourt7651 I buy gold as part of my diverse portfolio. I buy silver too. I will never buy all the right stocks at all the right times and neither will anyone else. I've done very well over the years and retired very early investing Dell, Philip Morris, Coke and others. I am satisfied with what I did and have. I wonder why the world's central banks are buying gold and not BH stock?
every gold bug is a conspiracy theorist too it seems
@@milkshakeplease4696 Not all of them, some just find buying gold to be a fun hobby. But those who want to see gold grow by 10+% a year tend to follow conspiracies, yes, as they feel ANYTHING that slows the increase of the price of gold. And then you have the ones who say our monetary system and/or society/civilization is facing unavoidable imminent collapse. These people are … well, let’s say some of them are a bit too eager to see time set back 200+ years.
It looks like that's the government's position as well, and that of all the central banks in the world who are buying it hand over fist. China and Russia are buying it at record levels. My goodness, I've never seen or heard of so many conspiracy theorist in the world today.@@milkshakeplease4696
wisdom
Wealthy people will always talk the price of gold down so they can buy more.
The dude gives away a lot of money. He’s doesn’t need to manipulate the price of gold to trick you.
Don’t buy gold, if buy gold you wait increase till 20, 10, , 30, year?.??, that’s the Time you still alive or die??., we need soon to big money
This man is very based.
He is a perfect example of the rich investors versus poor people. They can buy farms, poor people can’t so we poor people have little cash loosing value every day. That’s why we buy gold.
I make 55k per year. I am not rich. You can open up a brokerage account today and start putting money into it every month to invest in the SP 500.
Gosh Joe has been annoying since he was born
Sure, gold is a poor investment for a guy with the skills to make billions of dollars in the stock market. For most regular people adding a little gold to their portfolios isn't a bad idea.
implying the USA will remain a productive asset for much longer
it's the end of the world!!!!! we're dooooomed!!! is that what you're saying? you must be taking your pastor too seriously lul
Dude compares buying 1 oz of gold to 100 acres of farmland. Wut?
Buys barrick gold
Buys a productive asset, a gold mining company, doesn't buy the non-productive asset, physical gold.
Reilly A he bashed gold and tech for decades then buys them both at their highest points . Sells out in his stakes that hes been pumping the same number of years, airlines, etc... lol😔
@@Knowledge.to_Come He didn't buy gold. He bought a gold miner with a PE of 11. He buys value stocks. You will never understand basic economics because you don't learn.
Reilly A do you know how much a pe can change from quarter to quarter? Mining the useless asset, seems just as ludacris. He hasnt increased in net worth much in the past 2 years and he lost berkshire shareholders lots of money. Even admits repurchasing at 210$ brk b before the pandemic was a mistake. Nobody wants to admit he messed up lol. Anyways he could literally kill a small bird on tv and people would think no less of him
@@Knowledge.to_Come Hasnt increased much in net worth in the last two years lol My man, he gave away $2.9billion dollars worth of stock in 2020 alone. Gold has lost people money on way more occasions than Berkshire has, plain and simple.
Printed Money (US Dollars) will loose it to the Chinese Currency. Gold is bound to stay stable. Remember Gold has stood against all the economical crisis of past and it will stay that way. Gold is in human psyche.
I trust gold more than buffet
You're wrong lol
Gold is for scared old people
warren buffet is a liar. He tells people to avoid gold but now gold is soaring to an all time high.
Welp. Gold has outperformed both Berkshire and S&P500 since 1998.
A nice way of misrepresenting facts, 1998 was a year before the dot-com crash obviously equity prices were inflated back then. Gold has lost value i since hitting 2200$ in 1980.
How’s that for a stat you too
@@aaryanmehta4609 Even if you take the lows of Oct/ November 2001, gold has outperformed s&p500 by 1.58x. Gold's high was $742.5 in 1980. I mean...
Divy Jain nope, gold was 400$ in 2000, BRK-B 28$ and Gold is 2000$ now and BRK-B is 206$. Do the math
Let’s take 2009 as the last bull market started then GLD only 103% up what a shitty asset.
@@aaryanmehta4609 where tf do you get that data idiot ? Gold touched $300 that too once let alone $400.
This poor man drives a Cadillac and eats at mcdonalds.