Ghanaians call on government to shut down all illegal gold mines
Gold is a mainstay of the Ghanaian economy, accounting for nearly half of exports in 2023.
Buffet beats up gold in a preview of his upcoming letter to Berkshire Hathaway shareholders, previewed in Fortune on Thursday.
The well-known value investor said gold is not a good investor’s tool since it has limited use and it does not produce anything. Outside of making jewellery and some industrial uses, gold is mostly a static investment.
What motivates most gold purchasers is their belief that the ranks of the fearful will grow. During the past decade that belief has proved correct. Beyond that, the rising price has on its own generated additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis. As “bandwagon” investors join any party, they create their own truth — for a while.
Beyond the staggering valuation given the existing stock of gold, current prices make today’s annual production of gold command about $160 billion. Buyers — whether jewelry and industrial users, frightened individuals, or speculators — must continually absorb this additional supply to merely maintain an equilibrium at present prices.
Buffet prefers investing in assets that are productive, rattling off a few of his favourites like Coca Cola or See’s Candy.Buffet says the value in these companies lie in their ongoing productive value, creating things that people will be willing to exchange for a few minutes of their labour.
Warren Buffet, chairman and CEO of Berkshire Hathaway, has been ranked several times as one of the world’s wealthiest people.
While Buffet may not be kind to gold, he has not always shunned commodities. He did take a big position, although indirectly, in coal when Berkshire Hathaway purchased all of Burlington Northern and Santa Fe Railway in November 2009 for $44 billion.
Photo is work of Mark Hirschey
5 Comments
grrr
This from a man who famously purchased 22 tons of the gold.
Crikey McGregor
And why not pick up a few additional $ billion short selling, just say the word and it can all be yours. As always, it’s good to be The King
Rene Coda
Buffet is going to learn the hard way that he is totally wrong. Period. To pretend that gold produce nothing is infantilism. It does not have to. It just has to keep its value.
Don_Fredo
Could it be mr Buffet just tries to scare the ranks of the fearful out of their gold so prices will drop and he can get another 22 tons for a “reasonable price”?
My 2 cents (copper)
bbt
I wouldn’t trust Mr Buffet much, he has his own agenda