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The Champagne socialist and supporter of higher taxes, who pays himself a dividend rate of taxation and puts his money into charities and offshore trusts to avoid taxation, famously stated that gold and commodities in general are inferior investments. Even smart people can be dumb. Buffett's 'reasoning' is that the supply of gold is finite; and investors can make higher returns in the 'next century' – itself a timeline which means nothing – by buying 'productive' assets such as farms, manufacturing or firms which refine commodities. Here is Buffet's inanity, a rambling which proves that his retirement from business and investing is overdue. [Link, the Saint speaks]

“Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At $1,750 per ounce – gold’s price as I write this – its value would be $9.6 trillion. Call this cube pile A.

Let’s now create a pile B costing an equal amount. For that, we could buy all U.S. cropland (400 million acres with output of about $200 billion annually), plus 16 Exxon Mobils (the world’s most profitable company, one earning more than $40 billion annually). After these purchases, we would have about $1 trillion left over for walking-around money (no sense feeling strapped after this buying binge). Can you imagine an investor with $9.6 trillion selecting pile A over pile B?”

Yes Saint Warren I can well imagine people buying the pile A of Gold. The reasons are obvious even if marxists and the media big brains don't mention them. They include inflation, fiscal implosions and currency devaluations, not to mention government created stock and economic bubbles.

The media of course were titillated by it all, as they always are when the caviar commualist engages in specious and quite wrong commentary. Buffet after all has missed the entire technology revolution which is now the largest segment bar none, of the modern economy. Good call Warren.

Like technology, Saint Buffett dismisses gold. In the past 30 years gold has only gone from $20 an ounce to $1570. No other asset class is even remotely close to this increase in value. Buffet must also be vastly ignorant about monetary policy and fiscal insolvency. Governments are pursuing policies that Saint Warren deeply supports. Unlimited money printing and zero interest rates forever, artificially inflate stock values – which hugely benefits the likes of Saint Buffet who have large accumulations of financial stocks to protect, not to mention a selfish interest in across-the-board artificially stimulated stock markets.

Saint Warren and friends also demand unfettered deficit spending and debt accumulation which likewise stimulates many of the industries that the Saint is invested in, including his major stakes in manufacturing and industrial firms. In other words Buffett's policy prescriptions are carefully supportive of the interventionist and socialist state, and these policies are certainly self-interested if not hypocritical. But the media always portrays the Saint as an objective angel, playing harps and trying to help the little guy. Bullpuddy.

Saint Buffett is not some oracle of 'objective' genius. He is a very good investor and stock picker. But to state that gold will be a poor investment in the next 100 years is frankly insane. Currencies such as the Euro will likely implode, the US $ will also suffer in the long term, high inflation will occur, geo-political instability with the cult of Islam and the petro-dictatorships of the Moslem world a guaranteed event, and the limited supply juxtaposed against a strong future demand will all drive up the price of commodities including gold and silver. No one knows what will happen next week, let alonoe in the next 100 years – not even the Prophet Warren has any credibility in that regard, the man missed the momentous tech revolution after all. But investments you can bite and chew on, are a necessary part of any sane investment strategy. With governmental Marxism running amok, that fact will over time become even more apparent.

Gold has the been the single best investment in the past 30 years. It is highly likely to be the best investment in the next 30.