Forex Cuts

Buffett Wrong About Gold

Forbes |

In Brief...

The dollar, in contrast, has lost 90% of its value over the last 100 years alone.. Americans need to diversify away from complete allocations to the shriveling dollar held in savings accounts, bonds and so forth, and into a noncorrelated cash instrument such as gold.. If one looks through that prism, a more appropriate comparison may be with the dollar and the Titanic, as James Grant has made. Like the Titanic, the dollar was once in a class of its own, thought to be of lasting value. Today the dollar has taken on so much water (in the form of crushing debt) that it tragically cannot be saved in its current form. History tells us the dollar will not survive, and gold will preserve wealth, yet Americans keep virtually all of their net worth in dollars. You don't want to be remembered for discouraging Americans from diversifying their worth, given the fate that now inescapably awaits the dollar. Come clean, Mr. Buffett, and explain to America that having gold exposure, uncorrelated to the dollar, is a sage use of capital..

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