Still Clueless About Gold and Paper Money

[bobbyw24]

How can you write an entire article that bashes gold (e.g., how it has no intrinsic value, pays no dividend, etc. ) and not once mention the negative attributes of paper money – what replaced gold for good (supposedly) about 40 years ago?

Really! Think about it for a second. You can’t.

Why? Because once you start talking about how you don’t really need a gold standard or anything backing a currency so long as governments and central banks act prudently, you realize that governments and central banks are completely incapable of doing so over long stretches of time and the end result will always be the destruction of the currency.

But that’s what Brett Arends does in this report from The Wall Street Journal on investing in gold and, in the process, he quotes famed investor Warren Buffett who also seems to be deficient in this area:

Warren Buffett put it well. “Gold gets dug out of the ground in Africa, or someplace,” he said. “Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
…
It’s a currency “substitute,” but it’s useless. In prison, at least, they use cigarettes: If all else fails, they can smoke them. Imagine a bunch of health nuts in a nonsmoking “facility” still trying to settle their debts with cigarettes. That’s gold. It doesn’t make sense.

Honestly, The Wall Street Journal has been one of the more enlightened mainstream media outlets when it comes to gold, but this really sets them back a few notches in my view.

This is like something that you’d read in Money Magazine.

continue

http://seekingalpha.com/article/207603-still-clueless-about-gold-and-paper-money

 

[Up The Deise]

Warren Buffett put it well. “Gold gets dug out of the ground in Africa, or someplace,” he said. “Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
…
It’s a currency “substitute,” but it’s useless. In prison, at least, they use cigarettes: If all else fails, they can smoke them. Imagine a bunch of health nuts in a nonsmoking “facility” still trying to settle their debts with cigarettes. That’s gold. It doesn’t make sense.

My gosh, what arrogance.

Uses of gold.

1. Jewelry: The Primary Use of Gold
2. Financial Gold - Coinage, Bullion, Currency Backing
3. Uses of Gold in Electronics
4. Use of Gold in Computers
5. Use of Gold in Dentistry
6. Medical Uses of Gold
7. Uses of Gold in Awards and Symbols of Status
8. Uses of Gold in Glassmaking
9. Gold Gilding and Gold Leaf
10. Future uses for gold.

http://geology.com/minerals/gold/uses-of-gold.shtml

11. Use of Gold in Food and Beauty Products

http://www.utilisegold.com/uses_applica ... od_beauty/

 

[Acala]

Lol

"It has no utility"

Hahahaha!

That's like cutting off a gazelle's legs and then saying "It can't run". Money was one of the greatest inventions in human history, making efficient trade possible. And gold was the greatest money ever discovered. So good and so HONEST was gold money that the banksters had to destroy it because by its very nature it exposed their fraud. But the thing is, you can't destroy gold. So the banksters and their shills try to destroy its reputation. But gold doesn't tarnish either.

Behind all the smoke and mirrors, these truths are immutable:

Government can't create wealth, government can't destroy gold, and government can't convince people that gold has no value.

And these truths lead to the almost inevitable result of bankrupt government and gold returning to its rightful place as the world's money.

 

[Original_Intent]

I think about half of Warren Buffett's secret to success is he gives large number of people bad advice that he himself does not follow. He makes people who assume he must know what he is talking about because of his wealth make bad decisions which drives the market in his favor. (for instance, chasing people out of gold means more cheap gold for Warren).

We would typically think that people in the market would want to always drive prices up on things that they are holding, and thus Warren should be a gold bull. That only makes sense if you are measuring wealth in FRNs though.

 

[xd9fan]

for a good long thread on the WSJ article go here:
https://www.kitcomm.com/showthread.php?t=62665