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4 Notable Investors Who Don't Like Gold

By    |   Friday, 10 July 2015 01:56 PM

Successful investors who don’t like gold often look at the precious metal as a piece of insurance. It won’t necessarily make you a lot of money unless a severe economic meltdown occurs. They may advocate having some gold in your portfolio, but it’s not a way to make money.

Here are four notable investors who don’t like gold as an investment.

1. Warren Buffett
The billionaire investor and Berkshire Hathaway CEO favors investments that can generate income rather than speculative trades, TheStreet reported. Gold is considered speculative because investing in the precious metal is based on a hope that it will eventually bring more value. However, there are times when gold prices can fall or just linger with no increase to the investment.

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Buffet told CNBC during a 2009 interview: “I have no views as to where it will be (five years from now), but the one thing I can tell you is it won’t do anything between now and then except look at you.”

He predicted stocks such as Coca-Cola and Wells Fargo would fare much better as investments, saying, “it’s a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.”

In four years, during a gold rally, gold prices increased by about 45 percent, but Coke shot up 100 percent and Wells Fargo’s value increased by 200 percent, according to Jeff Reeves at MarketWatch.

2. Charles Munger
Buffett’s friend and Berkshire Hathway vice-chairman, Munger, was on the same page when he told CNBC in 2012: “Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939, but I think civilized people don’t buy gold, they invest in productive businesses.”

3. Lance Roberts
Host of the StreetTalk radio show and editor of the X-Report newsletter, Roberts advised investors on Investing.com to stay away from gold and gold-related holdings during a two-year slump in the precious metal prices.

Roberts doesn’t necessarily avoid gold, but only recommends buying it when it is trending positively. He looks at signals, such as potential inflation, before owning gold during times of economic chaos.

4. Mark Hulbert
A columnist for MarketWatch, Hulbert also doesn’t see a need to buy gold unless it shows bullish signs. Hulbert wrote that investors should wait for signs the precious metal is bottoming out before buying it. Worries about global economic downturns might signal a time to buy.

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Successful investors who don't like gold often look at the precious metal as a piece of insurance.
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Friday, 10 July 2015 01:56 PM
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