Warren Buffett to invest in gold? Why or why not?

Answer:

Warren Buffett doesn’t invest in gold. He invested almost $ 1 billion in silver, therefore, the reason for his dislike is not just a dislike of precious metals. Explanation of Buffett’s dislike of gold and his enthusiasm for silver stems from its basic principles of value investing.

Warren Buffett has been very vocal about his disdain for gold as an investment. He sees no point in it. What Buffett calls the lack of results for lack of utility. He once said about gold, “he does nothing but sit there and look at you.”

One of the basic principles of Buffett’s investment is that it is necessary to invest only in what is good, what to serve a purpose and that is to put some practical need of the people. Silver has many industrial and medical applications. In medicine, silver is used in bandages, catheters and as a healing agent for burns and other health conditions. It is also used for water purification. In electronics, silver is the best metal conductor of electricity and resistant to corrosion, so it is widely used in wires and fittings, computers, mobile phones and cameras. Used to cover the discs because it is resistant to scratches.

Thus, the silver meets the requirements of Buffett, has a real, identifiable value. Even better, from the point of view of the investor, silver is almost uniquely suited for the amount of use it acts as an industrial metal and will be difficult to replace with the replacement material. In medicine, silver is used in bandages, catheters and as a healing agent for burns and other medical conditions. It is also used for water purification. In electronics, silver is the best metal conductor of electricity and resistant to corrosion, so it is widely used in wires and fittings, computers, mobile phones and cameras. Silver is used to cover the discs because it is resistant to scratches.

Gold does not meet the requirements of usefulness Buffett. Although it has a number of industrial applications, not almost indispensable as silver so often. Gold makes beautiful jewelry, but that by and large, without practical application. According to Buffett, since it practically has no value, this is not a good financial asset. Metal goods, which glitters on the table is silver, not gold.

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