Monday, January 10, 2011
Go buy Stocks, not Gold!!
About the shiny metal Warren once said:
"Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."
On the record in year 2009, there is 165,000,000 kg of gold have been mined in human history, which 50% go to jewelry, 40% go for investment, and the rest 10% go for industry.
Current gold price now is USD 44,453 per kg. If we times out, we will get the gold value of 7,335 billion.
In year 2010 October, Warren Buffett did say with the price at that time, 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.
Do human really need gold? Is it gold could help human to sustain life?
What human actually need is food, lands and energy. Without those things, human cannot survive. However without gold, human is manage to survive.
People like to use gold as a hedging tools to help them maintain their buying power. But do they ever think that gold is just a material, it creates no value at all. Does it pay dividend? Does it growing? None~
Invest in stocks is still the best way to maximise your return. Go and invest!
I am wondering someday, somehow at somewhere, someone around the world suddenly discover a huge gold mine. What happen will occur on the gold price? :p
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