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| Over a long period of time, you basically have to own productive assets. You need to capture their ability to raise prices, harness technology and productivity gains, reinvest the cash in said business, or deploy it elsewhere. With raw commodities, you just dont have that. He did buy a bunch of silver one time but that was clearly more of a trade as he viewed the price too low relative to its societal use and the yearly production of silver mines... (if I remember his describing it correctly).
I do concede that gold, before its current run up in price was somewhat interesting in that fiat currencies were growing way way faster than their underlying economies. So if you charted the two on a line graph you had a somewhat flat price of gold but like an 8% yearly increase in fiat currencies (so gold was "cheaper than it should be"). That was an interesting argument at the time (a year to 18 months ago when I listened to that podcast). But again, I would buy an expensive farm over an expensive commodity... | |
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Metals and warren buffet
