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I don't often say this about Warren Buffett quotes, but that is one of the most idiotic things I have ever heard anyone say. If you owned this 67 ft. cube - al

I don't often say this about Warren Buffett quotes, but that is one of the most idiotic things I have ever heard anyone say. If you owned this 67 ft. cube - all of the gold in the world - you would be able to extract any profit you wanted from the vast majority of all electronics sold in the world, along with a long list of other products. Your $7 trillion would turn into...whatever you wanted it to. Buffett is showing his age and publicly admitted lack of understanding of technology.

fooker 10y ago
People would just switch to some other material for industrial uses if you demamd an exorbitant price. Gold, while useful is not indispensable.
- downandout 10y ago
  It would take long enough to effectuate such a switch in all products across the world that you could extract enormous sums of money in the meantime - far more than your $7 trillion. At the very least, industrial gold usage has not decreased in the face of the historically highest market price of gold. You could start at that price, and increase it until you reach the optimal price.
  - nikdaheratik 10y ago
    And then what would you do with your gains? You already have all the gold in the world, so what would you buy after that if you want to increase your return on investment?
HillRat 10y ago
I think you're taking this a bit too literally. Consider a less extreme case; given a choice between a pound of gold or the current financial equivalent in Berkshire Hathaway equity (about 150 shares), which is more likely to provide higher returns over the long run? Buffet is basically making an optimistic case for the American economy, arguing that gold is a hedge, while market investment is a strategy.
- downandout 10y ago
  Yes, I understood what he was trying to say, but his comparison was too far over the top and inaccurate to not be called out. His wording introduced and failed to account for the idea of someone having a monopoly on gold.
luckydata 10y ago
It would be challenging to find a better example of the reason why Buffet is one of the world's richest man and you're spending your time on HN than your own comment.

fooker 10y ago

People would just switch to some other material for industrial uses if you demamd an exorbitant price. Gold, while useful is not indispensable.

downandout 10y ago
It would take long enough to effectuate such a switch in all products across the world that you could extract enormous sums of money in the meantime - far more than your $7 trillion. At the very least, industrial gold usage has not decreased in the face of the historically highest market price of gold. You could start at that price, and increase it until you reach the optimal price.
- nikdaheratik 10y ago
  And then what would you do with your gains? You already have all the gold in the world, so what would you buy after that if you want to increase your return on investment?

HillRat 10y ago

I think you're taking this a bit too literally. Consider a less extreme case; given a choice between a pound of gold or the current financial equivalent in Berkshire Hathaway equity (about 150 shares), which is more likely to provide higher returns over the long run? Buffet is basically making an optimistic case for the American economy, arguing that gold is a hedge, while market investment is a strategy.

downandout 10y ago
Yes, I understood what he was trying to say, but his comparison was too far over the top and inaccurate to not be called out. His wording introduced and failed to account for the idea of someone having a monopoly on gold.

luckydata 10y ago

It would be challenging to find a better example of the reason why Buffet is one of the world's richest man and you're spending your time on HN than your own comment.