Voltalia Ord Shs VLTAF

RE: WHAT WARREN REALLY THINKS

[ALLEN4]

Banx, interesting, I had not seen that.  So he says we have the basic premise right, to run from paper money, but that we have it wrong as to where we run to.  And that has been the tough question for me.  Countries that should be bankrupt have avoided the problem by printing money and just like a junior miner printing shares when it needs capital, that will utlimately create a crisis.  But I too am skeptical about the argument that the price of gold will continue to go up in proportion to the amount of money printing going on.  It sure has not happened since the financial crisis began in 2007.   For people looking for a proxy to bet that printing money is a poor solution to the financial crisis, gold is less than perfect.     But I agree with you that gold has value;  Buffett made a lot of money off of Coca Cola over the years;  that stuff is poison and I stopped drinking it years ago.   Its hard to argue that Coca Cola has more intrinsic value than gold.    And also remember that Buffett is talking about gold itself rather than stocks.  How would he feel about a company that is creating value by locating and ultimately producing a product that he may say has no intrinsic value but that others in the world are willing to pay money for?  I think he would be more inclined to endorse a company like Volta than the purchase of gold itself.    What Warren Buffett does with his money is very far removed from what we are doing when we put money into Volta.  There is no question that we are much further into the speculative realm here, rather than the slow and steady world of investing and re-investing where Warren lives.   I do quote him from time to time because he certainly has insight into the necessary state of mind required to be successful in the financial world - patience, independence of thought and an appreciation of the difference between price and value.

Here is an interesting interview, today's date, about whether analysts have lost their credibility with their high target prices on gold stocks given a sector that has been badly beaten up over the past few years.

https://news.goldseek.com/GoldSeek/1360598400.php