MEMBER'S LOGINX
| Invalid Username / Password | ||||||||
| Invalid Captcha | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
- Home
- Todays Market
- Indian Stock Market News March 7, 2011
Gold: Which side are you on? Mon, 7 Mar Pre-Open
Gold prices have been on a tear off late. The yellow metal has risen by around 24% over the past one year. And gold bugs are lining up to predict that this is not the end of the bull-run in this commodity.
But standing aside of these gold bugs is one person who maintains his dislike for gold. We are talking about none other than Warren Buffett. Buffett reiterated his views in a recent interview with CNBC.
And like everything that he speaks, even his remarks on gold contained a tinge of humour. He's reported to have said, "...if you took all the gold in the world, we could have a cube that went down there 67 feet...and that would be the whole thing. Now for that same cube of gold it would be worth at today's market prices about $7 trillion. That's probably about a third of the value of all the stocks in the United States. So you could have a choice of owning a third of all the stocks in the United States or you could have a choice of owning that little block of gold, which can't do anything but kind of shine there and make you feel like Midas or Croesus or something of the sort."
He added, "Now, for $7 trillion...you could have all the farmland in the United States, you could have about seven ExxonMobils, and you could have $1 trillion of walking around money. Call me crazy but I'll take the farmland and the ExxonMobils."
That's Buffett at his best in criticizing the yellow metal.
But then, whatever Buffett says, gold investors are enjoying their day in the sun. Concerns in the Middle East have added to the yellow metal's shine, given that it is generally considered as insurance against crises.
But then, the current concern we have with gold is that there are too many people getting onto the metal now, and that too without knowing what they are doing. Call this short-termism, or speculation, buying gold without understanding the reason for buying it is like inviting trouble.
Now that's one long proven law of investing!
For information on how to pick stocks that have the potential to deliver big returns, download our special report now!
Read the latest Market Commentary
Indian Share Market Update: Top Gainers and Losers
Equitymaster requests your view! Post a comment on "Gold: Which side are you on?". Click here!
1 Responses to "Gold: Which side are you on?"
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
- Multibagger Penny Stocks
- Basics of Value Investing
- Benjamin Graham
- How to Invest in Gold
- How to Invest in Silver
- Best Stocks to Buy Today
- Best Small-cap Stocks to Buy
- Best Bluechip Stocks to Buy
- Guide to Penny Stocks
- How to Invest in the Share Market
- Warren Buffett - The Value Investor
- Pick the Best Multibagger Stocks
TRENDING TOPICS
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407
Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com
LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
P.MOHAPATRA surat 09374710105
Mar 7, 2011Mind it,and remember the lines from the poem "The Brook","Men may come and men may go, But I go on for ever."
Like that Gold will keep on shining for ever. Whether it is any currency-Dollar or Euro or yen or any stock index-it may rise it may fall ,but Gold will rise for ever.