WHO’S RIGHT?

4 comments

Posted on 30th May 2012 by Administrator in Economy |Politics |Social Issues

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“I will say this about gold. If you took all the gold in the world, it would roughly make a cube 67 feet on a side…Now for that same cube of gold, it would be worth at today’s market prices about $7 trillion dollars – that’s probably about a third of the value of all the stocks in the United States…For $7 trillion dollars…you could have all the farmland in the United States, you could have about seven Exxon Mobils (NYSE:XOM), and you could have a trillion dollars of walking-around money…And if you offered me the choice of looking at some 67 foot cube of gold and looking at it all day, and you know me touching it and fondling it occasionally…Call me crazy, but I’ll take the farmland (NYSE:DBA) and the Exxon Mobils (NYSE:XOM).”
 
Warren Buffett

 

“The debate around currencies, cash, and cash equivalents continues. Over the last few years, we have come to doubt whether cash will serve as a good store of value. If you wrapped up all the $100 bills in circulation, it would form a cube about 74 feet per side. If you stacked the money seven feet high, you could store it in a warehouse roughly the size of a football field. The value of all that cash would be about a trillion dollars. In a hundred years, that money will have produced nothing. In a thousand years, it is likely that the cash will either be worthless or worth very little. It will not pay you interest or dividends and it won’t grow earnings, though you could burn it for heat. You’d have to pay someone to guard it. You could fondle the money. Alternatively, you could take every U.S. note in circulation, lay them end to end, and cover the entire 116 square miles of Omaha, Nebraska. Of course, if you managed to assemble all that money into your own private stash, the Federal Reserve could simply order more to be printed for the rest of us.”

David Einhorn

4 Comments
  1. IndenturedServant says:

    They’re both right……….sort of but we need more info such as investment period.

    Right now, gold is a good, safe investment and cash is akin to having the plague. That will change some day. For the very long term though, I’d take the farmland.
    I_S

    Like or Dislike: Thumb up 1 Thumb down 0

    30th May 2012 at 3:01 pm

  2. ron says:

    At least with cash you could make a bed of it and laugh evilly as you rolled around in it.Like Mr. Burns on The simpsons.
    Gold? put a small pile in your yard and sick the hounds on would be thieves,or target practice.

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    30th May 2012 at 3:19 pm

  3. Axel says:

    At least having cash is better than not having cash.

    And not having cash is better than having debt.

    Like or Dislike: Thumb up 3 Thumb down 0

    30th May 2012 at 6:04 pm

  4. Kill Bill says:

    Currency is meant as a means to ease bartering [the trade of labors]

    When currency is produced without labor…..

    Like or Dislike: Thumb up 4 Thumb down 0

    30th May 2012 at 6:23 pm

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