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Social Clubs / Deranged Monkey Criticism

URL:  http://boards.fool.com/in-my-view-gold-largely-trades-on-fear-and-30683900.aspx

Subject:  Re: Poll: Technical Analysis Date:  5/14/2013  5:47 PM
Author:  EightTrack3 Number:  17125 of 19632

In my view gold largely trades on fear, and mostly irrational fear ... The real fundamental things in life are food, drink, soap, personal care products etc. I learned that lesson from Buffett.

Someday I hope to meet you. A man who includes personal care products in a list of real fundamentals things which include food and drink and Buffettphilia must be an impressive combination of Adonis and Athena. I bet your breath smells like a million bucks (700 troy ounces, if you're feeling a bit irrational this evening).

Buffett has always labeled himself fortunate for being born an American male, hence it is entirely understandable for him to shun gold. Certainly his ability to buy and sell stocks at extraordinary rates of return helps make that decision a no-branier.

A number of years ago I took a cab ride to the airport in Istanbul, Turkey. The cost was 25,500,000 Liras. I gave a 4 million tip.

May I suggest EightTrack's Exception to Buffett's Rule of Gold Aversion? If your currency is named Lira, make sure you own some Gold. That rule applies for any and all Liras in the world.

The same gentleman who led you to your personal care products, the Oracle of Omaha, invested in silver which shares some of the qualities of gold (but has additional industrial applications, admittedly). Indeed, he also owned Handy & Harmon stock back in the day. And Buffett is the first to point out that not all people are afforded the comforts and securities that Americans take for granted (cue patriotic music and large American flag glistening in sunlight).

So how much financial insurance is appropriate? Of course, the answer is, it depends ... on personal risk preferences, personal circumstances, and the cost of insurance (gold). But isn't that the same questions potential investors in stocks have to ask themselves?

ET
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