Charlie Munger: Civilized People Don't Buy Gold
author name submits:Charlie Munger, the Vice Chariman of Berkshire Hathaway (BRK.B), spoke out against the wisdom of purchasing gold during a May 4th interview with CNBC. In a clip that you can see here, Munger offered this trope about gold as an investment:
"I think gold is a great thing to sew into your garments if you're a Jewish family in Vienna in 1939, but I think civilized people don't buy gold. They invest in productive businesses."
While I might not have worded it that way, I do think Munger is right in that there are other ways to hedge against inflation than by buying gold, which is traditionally a store of value against so-called "fiat currencies" that are issued by governments without the restraint of being tied to hard assets.Whenever investors decide to load up on shares of gold, they usually do it for one of two reasons. Either:(1)Complete Story »