Nothing Worse For Gold Exposure Than Doing It Via Miners?

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Nothing Worse For Gold Exposure Than Doing It Via Miners?

Nothing Worse For Gold exposure Than Doing It Via Miners? by Attain Capital

A caddy on the golf course this past weekend asked one of Attain’s partners (Jeff Malec) what the caddy’s mom should do with her Gold bars. She thought it was a no brainer to load up on a few hundred thousand dollars worth of physical yellow metal back in 2010ish, but is having second thoughts of late with the barbarous relic off more than 30% since its highs, while other commodity markets are making new highs  (Coffee up 75% YTD, Cattle at all time highs – past performance is not necessarily indicative of future results).

Mr. Malec asked the caddy if he had ever heard of Warren Buffet. The caddy said he had, and Mr. Malec proceeded to tell him to pass along Buffet’s thoughts on Gold:

“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.”

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