FSaucy (99.96)

Gold... Again

September 08, 2011 – Comments (1) | RELATED TICKERS: UGL

I want to highlight scooter186's red thumb pitch for an ultra long gold ETF (ticker UGL) made early this year.  He quotes Warren Buffett from an interview done about a year ago when gold was some 30% lower than today and UGL has since rallied over 75%.

Currently this pitch has two recs, mine and someone else. If you like the linked article and Buffett's position on gold, rec the pitch and show support for us gold bears!

http://caps.fool.com/Pitch/UGL/5422343/quotyou-could-take-all-the-gol.aspx

"Which is going to produce more value?" Produce is the key word. Gold does nothing but sit there. Stocks represent companies that produce real value by improving the quality of life and bringing about progress in our civilization. To be long gold, boiled down in my simple mind, means you have more faith in a metal to take care of your wealth than you do in human ingenuity and the potential for our future. It's a sad state of mind to have and a bleak future to believe in.

I will leave you with 2 other readings:

http://www.nytimes.com/2011/07/24/your-money/in-golds-popularity-shades-of-1980-strategies.html

http://randomglenings.blogspot.com/2011/09/investment-lessons-from-my-father-and.html

This last one is a good article but I shared mainly for the tiny graph at the top - is gold better than cash? Yes! Is it better than stocks? No! Gold I see as a wealth preservationist investment, whereas stocks I see as growth vehicles. And yes, cash is something needed in the short term to pay bills but should never be held long term.