Gold- Buffett And Morgan Stanley Agree
Jan. 31, 2014 10:16 AM ET | About: GLD, Includes: IAU
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
If there was ever a good time to invest in gold (IAU), it has likely now passed. During the recent recession, rising gold prices (see chart below) convinced many that precious metals (FCX) were finally viable investments. In fact, during those heady days, some indeed made money in gold-based ETFs (GLD); however, far more lost substantial sums during 2013's protracted gold crash. In 2013, gold lost 28% of its value, leading to widespread consternation.
(click to enlarge)
(Source: Yahoo! Finance)
Famous investor and commentator Warren Buffett (BRK.B) hasn't shied away from releasing "I told you so" statements with regards to gold (GDX). Whether one finds Buffett (BRK.A) refreshingly forthright or simply overbearing -- events have played out according to his predictions. Buffett has questioned the status of gold for some time as a practical medium for investment. Even more than stocks or currencies - precious metals are subject to the dictates of public paranoia: high gold prices depend on pundits convincing enough people that the global economic system is about to face a crisis of near-apocalyptic proportions. See our prior Buffett story on Gold here.