I heard Warren Buffett of Berkshire Hathaway fame recently reply to reporter when they asked his thoughts on gold. He stated that all the gold in the world adds us to a cube of 67 feet. So a 5 story cube of gold would look neat would it not? He said instead of having all the gold in the world he could own 100% of all the farmlands of the US both corporate and private plus 7 Exxon Mobil types companies and extra Trillion dollars of walk around money. He laughed and clearly ask which would you like? He then stated that gold does not produce a dime of income and he would take all the farms, business and cash instead.
When your fears are all about the world going under and all of us walking our donkey and scraping the ground for food in old clay pots then gold has survival value. One of my friends mentioned to me that those with gold will be surprised by those with guns to take the gold like Robin Hood did to the rich passing through Sherwood Forrest.
The rational side of investors says a small gold hedge may be appropriate however to try and hoard gold or bank on it as your future will likely disappoint as real estate investors have been disappointed these past 3 years. I will not make predictions of where gold will go but I would venture to trust it will go down more than go up from where we are in August 2011 at around $1800.
Let me ask some questions here, what do you want your investments to do for you? Do you have some idea as to how much is enough and what if you passed your finish line with excess? When you think about the label wealthy do you think of some Hollywood star or professional sports star or do you compare to the most successful business tycoons? What makes you happy and when are you most content and felling blessed? If these are intriguing questions you may want to consider getting coached to work through these ideas.
A couple questions have come up on this blog: What if United States currency gets revalued or changed up and should I have some hard assets like gold? I will not predict or speculate on this occurring, however I do believe it is prudent to have some hard assets like gold, silver, and other assets including real estate. Everyone should have a few silver coins in case there is a banking change that might shut down banks for say a week and at least you could use silver coins to trade with other in a harsh and temporary setting.