Blog: Cutting Through the Noise

Buffett on GoldPrint

Posted on November 17, 2010

By Tom Bradley

In response to my post last week (A Simple Risk Management Tool to Avoid the Next Bubble), a friend and former partner, Dan Lewin of Lewin Capital Management, sent me a clip on gold. It came from a conversation between Ben Stein and Warren Buffett for Fortune magazine.

When asked, "What about gold? Is this a classic bubble or what?", the Oracle of Omaha responded with the following:

"You could take all the gold that's ever been mined, and it would fill a cube 67 feet in each direction. For what that's worth at current gold prices, you could buy all -- not some -- all of the farmland in the United States. Plus, you could buy 10 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?"