Warren Buffett has never been a fan of gold and has publicly disparaged the yellow metal on more than one occasion. During his annual shareholders meeting earlier this month, he compared investing in gold and stocks, arguing that over the long term gold is an “unproductive asset” that “doesn’t produce anything.” So, why have it, unless you just want something to “fondle.”
But is Buffett really making an accurate comparison? Or is this a proverbial apples and oranges scenario?
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
I have found the perfect way for you to wash money down the drain. I mean literally wash it down the drain.
A Lebanese company has produced a bar of soap worth an estimated $2,800.
I know what you’re thinking. Soap that costs nearly three grand? What, is it made of gold?
Why yes. Yes, it is.
The mainstream keeps telling us the economy is great. Unemployment is low. The stock market is high. There’s nothing to worry about. So, when we do express concern and argue that maybe things aren’t so great, the mainstream writes us off as contrarians or old-fashioned “gold bugs.”
Of course, there has been a certain negativity toward precious metals investing for years. as SRSrocco put it, “There’s a very interesting notion put forth by many commenters that the precious metals analysts and dealers are the frauds and charlatans, not Wall Street or the central banks. I imagine they believe this because gold and silver prices haven’t performed as forecasted or compared to the insanely inflated stock, real estate, and crypto markets.”
But no matter what they might think, there are important reasons to buy gold – especially now while everything is supposedly great.
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
I always enjoyed watching the TV show, Dirty Jobs. Mainly because it made me feel better about sitting at a computer writing stuff all day. It can be monotonous, but it certainly beats inspecting sewers, or wrangling snakes, or chicken sexing.
But what if the payoff for your dirty job was gold? Would you consider it?
Some people in India do. They scavenge through, dust, grime and sewage on Mumbai’s streets to collect gold.
Chinese and Indians love gold. It is not only considered an investment and a way to protect wealth. The yellow metal also weaves itself into the cultural fabric of both countries. Gold is often given as gifts at weddings, and during other holidays and festivals. This affinity for gold has led some to dub a major component of overall demand for the yellow metal in India and China the “love trade.”
According to an article published in Forbes, the love trade is looking pretty good for the rest of 2018. This bodes well for overall gold demand, as China and India rank as the No. 1 and No. 2 gold markets in the world.
Net inflows of gold into gold-backed ETFs hit the highest level in more than a year last month.
Global gold-backed ETF holdings collectively added 72.2 tons of the yellow metal in April, according to data released by the World Gold Council. Overall, gold-backed ETFs increased their holdings to 2,481 tons worth an estimated $104.6 billion.
According to the World Gold Council, overall global demand for gold was soft in the first quarter of this year. But demand in the technology sector was particularly strong, marking its sixth consecutive quarterly gain.
Overall, demand for gold in technology and industry increased 4% to 82 tons year-on-year.
GFMS analysts say they expect gold to deliver its strongest annual price performance in five years during 2018.
In its Gold Survey 2018 report released today, GFMS analysts said political uncertainty will drive investment in gold bars and bullion-backed investment funds. They predicted gold will average $1,360 an ounce this year, up 8% from 2017, with some short-term moves towards $1,500.
