NEW YORK (Commodity Online): Warren Buffet's distaste for gold is well known and despite the meteoric appreciation in the value of gold, his view does not seem to have changed.
In a preview to his annual shareholders letter, Buffet says that companies like Exxon Mobil and other productive assets like farmland and real estate are not only superior to gold but in fact safer in the long run
Buffet says that the current global gold stock is is at 170,000 metric tonnes, which at $1750/oz will come to $9.6 trillion. He goes on to say that with this much amount of money, an investor can buy all US cropland (around 400 million acres producing $200 billion per annum) and 16 Exxon Mobil (each earning more than $40 billion per annum) and still have $1 trillion left.
Can you imagine an investor with $9.6 trillion buying gold instead of procuring the above said assets (cropland, Exxon Mobils), he argues.
