“Buffett Trashes Gold, But What About Silver?”

Posted by on February 14th 2012 in China, Federal Reserve, General Economy, Gold, Monetary Policy, Short Sellers, Silver, Wall Street, Warren Buffett | Be the first to comment!

After Warren Buffett reiterated his disdain for gold in a Fortune article last week, a Wall Street Journal commentary cautioned that “the yellow metal has a history of humbling very smart people,” and suggested that Buffet “just might have it wrong when it comes to the oldest haven of all.”

And while everyone who cares knows Buffett’s view of gold, Wall St. Cheat Sheet‘s Eric McWhinnie wonders why Buffett “continues to omit silver from the conversation,” citing as one example his investments in solar energy. “Maybe Buffett is still sour from his past venture into the most conductive metal known to man?”

According to a 2007 Silver Monthly editorial that McWhinnie refers to, from 1997 until 2006, Buffett’s Berkshire Hathaway “accumulated over 37% of the world’s known silver supply—even more than the COMEX! During that time, he was not only an oracle but also the all-time silver bull…. But the genius of Buffett was called into question as it appeared that he sold way too early; the price of silver has more than doubled from Buffett’s average purchase price of around $6 per ounce. Many–including Buffett himself–felt he sold out too soon.”

Related Links: 

Dow Jones:  Gold slips 0.4% on fresh Greece worries; silver down 1.1%

Silver Investing News:  Silver opens week focused on Greece

TF Metals Report:  Silver still strong above $33

Bullion VaultPhysical demand “supporting gold price” in “sideways trading”

Trader Dan:  Gold moving higher in yen terms; strong in euro terms

P. Radomski:  Gold still in the red from a short-term perspective

Reuters/WSJ:  World’s first yuan-denominated gold ETF makes weak debut

Resource Investor:  A coming paradigm shift in silver?

Seeking Alpha:  Silver’s rise will shock market participants this year

Market Oracle:  2012: A political year for gold  

Mineweb:  The politics of central bank gold holdings

KWN:  Jim Sinclair – Central banks trying to keep gold from rising violently

Alasdair Macleod:  Katastrophenhausse  (crack-up boom)

Zero Hedge:  Jim Grant on gold-backed bonds and ‘the hope leeches’

Money Morning:  Why I’m taking gold Double-Eagles on my next trip to Utah

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