Warren Buffett: If Gold Went to $1000 I Still Wouldn’t Be a Buyer

Berkshire Hathaway CEO Warren Buffett (BRK.A)(BRK.B) spoke with FOX Business Network’s (FBN) Liz Claman live from Omaha, NE on the eve of the Berkshire Hathaway Annual Shareholder Conference. Buffett discussed Bekshire’s succession plan and who might replace him and said, “I’ve used the pronoun he and it’s a he – he will be very good. Maybe 10 years or 15 years from now it will be a she. I hope it is.” Buffett also discussed sending his first tweet today, saying, “They gave me something and they said push here. That was the limit of my capabilities.” When discussing the recent drop in gold prices, Buffett reinstated, “I am not a buyer of gold” even “if gold went to $1000 I still wouldn’t be a buyer. If it went to $800 I wouldn’t be a buyer.”

On his succession plan:

“I would point out we have investments totaling almost $50 billion in 4 companies, IBM, Coca Cola, Wells Fargo…I don’t know who’s going to succeed the present CEOs there and in every case, each one of the four they have changed CEOs since we started buying the stock in certain cases more than once. I never knew who they were going to be, I knew they’d pick good people. And there’s no one more concerned about the successor than I and we spend more time at the board meeting talking about that, if something happens to me tonight if I pick up 13 spades and my heart gives out the board tomorrow morning will have somebody and – I’ve used the pronoun he and it’s a he – he will be very good. Maybe 10 years or 15 years from now it will be a she. I hope it is.”

On how he made his first tweet:

“They gave me something and they said push here. That was the limit of my capabilities.”

On Moody’s downgrading Slovenia to junk:

“We own a few less [shares of Moody’s] than the other day … we’ll see more surprises but it really doesn’t make any difference. I am not going to sell my farm that I own or my apartment house I own because of some news that happens next week or next month.”

On whether he’d invest in gold:

“No, gold is not reproduced or anything since I wrote about it in a year or two ago. It just sits there and you hope somebody pays you more for it. If gold went to $1000 I still wouldn’t be a buyer. If it went to $800 I wouldn’t be a buyer. It’s never really interested me…I am not a buyer of gold or silver.”

On whether he thinks America is doing something wrong because of the poor jobs numbers:

“You can always say there may be something we can do better but this country has been doing pretty darn well. what we went through in 2008 was something like I’d never seen. A lot of things that were a whole lot worse than what happened could have happened if we handled things wrong. I give credit to Bernanke, and Hank Paulson, George Bush, Barack Obama and Tim Geithner. Overall they did some very gutty things, they did some very right things and anybody can look back and second guess it but this country went through a shock like I’ve never seen and it’s functioning pretty darn well now.”

On whether the snow in Omaha will affect the number of shareholders who are attending the investor conference this weekend:

“I wouldn’t think it would affect it. I expect a record but we never really know for sure because they come and leave, back and forth. But we’ve got more tickets sent out, everything indicates we’ll have a record.”

On what vulnerabilities he sees in the US markets:

“I don’t think the US is terribly vulnerable. The recovery is a lot slower than people would like but it is a recovery, it’s a constant recovery. You can say Europe has got plenty of problems.”

Source: http://www.gurufocus.com/news/218043/warren-buffett-if-gold-went-to-1000-i-still-wouldnt-be-a-buyer

Gold Buyers Put On Waiting List, The Illusion Of Growth

For the unemployed, no reprieve on budget cuts

Starting this week, many in California collecting federal unemployment benefits will get about 17.7% less than they got last week, thanks to Washington’s across-the-board budget cuts.
Those cuts — the so-called sequester — require that states pay out less on federal extensions of benefits, and the reduction is retroactive to March 1, when the sequester went into effect.

Moody’s downgrades Slovenia to ‘junk’ bond rating

Moody’s Investors Service cut Slovenia‘s government bond rating by two notches to Ba1, its highest “junk” bond rating, from Baa2 on Tuesday and said the outlook for the rating remains negative. The ratings firm cited three factors: the health of the country’s banking sector, the marked deterioration of the government’s finances, and uncertain funding prospects that heighten the probability that external assistance will be needed. The government had been seeking to raise cash through a bond sale, but called it off earlier Tuesday ahead of the ratings announcement.

Bad Economy Sends Spaniards Packing for Latin America

Overall, 310,000 fewer migrants went to Spain from Latin America during 2008-2010 in comparison with the previous three years. In 2011, the number of Latin Americans granted residency in Spain fell to half of the figure reported in 2007.
Spain had a lot of people from Peru and Ecuador, but now with the crisis the Latinos who came to Spain for jobs are going back [home] … they don’t have work,” Rodriguez says.

Perth Mint working flat out on weekends to satisfy gold rush

”We haven’t seen levels like this since the 2008 global financial crisis,” Mr Currie said. ”Compared to March sales, April sales have doubled or tripled.”

Gold buyers forced to go on waiting list

Investment company Physical Gold said there were waiting lists of three weeks for some coins, and four to six weeks for gold bars. “Previously all would have been available within a few days,” the company said.
The company said that it had seen a 50pc increase in enquiries about purchasing gold and a 35pc increase in sales, with people buying tax-free gold coins. “We are now starting to experience physical gold shortages,” said Daniel Fisher, CEO of Physical Gold.

‘There will be more wealth confiscation, without a doubt’

European politicians will take the “easy option” of taking money from the rich rather than raising taxes and cutting spending to deal with the continent’s debt problem, Lars Christensen, the head of Saxo Bank, said.
Asked if the raid on uninsured savings in Cyprus would be repeated, he told City AM: “There will be future bail-ins [loss of deposits] and other types of confiscation of wealth in the eurozone, without a doubt.

Canada can’t account for $3.1B in anti-terror funding, AG finds (westcoastjan)

“It’s a matter of missing that last link in putting that information together,” he said at a news conference in Ottawa Tuesday morning. If the money was reallocated from the anti-terrorism program to another program, there should have been approval for that, he added.

“We don’t have enough information to say whether that happened,” he said.

The Crash BEFORE the Climb (GE Christenson)

Markets rally, correct, rally, and correct again. Some of the corrections are so severe we call them crashes. In the big picture, it hardly matters whether the crashes were accidental, encouraged, manufactured, or all three. In the big picture, what matters are the market fundamentals. After the correction, have the fundamental drivers of the market changed?

Neil Macdonald: The illusion of growth (westcoastjan, Nervous Nelly)

The Bank of England, the most energetic money printer in the world relative to the size of the economy it serves, has printed £375 billion (roughly $576 billion US), and is probably going to print more. The Bank of Japan has just launched an aggressive money-printing program of its own, planning to double the size of its balance sheet within two years.

Source: http://www.peakprosperity.com/dailydigest/81761/daily-digest-51-gold-buyers-put-waiting-list-illusion-growth

Desperate Countries To Accelerate Private Wealth Destruction

Today Egon von Greyerz told King World News that desperate countries will accelerate the amount of wealth destruction they inflict on their citizens going forward.  Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, also spoke about the gold and silver smash which has been orchestrated by the US government.  Below is what Greyerz had to say in this tremendous interview.

Greyerz: “Eric, gold is down and investors are nervous.  We have to ask ourselves, have any of the fundamentals changed?  The answer is no, they haven’t.  Government deficits are still increasing at an alarming rate, and world debt is at $220 trillion.  In fact, world debt has tripled in the last 10 years.

The US is the biggest debtor and the debt is still increasing by $4 billion each day, or $1.5 trillion each year.  Since Bernanke has become Chairman of the Fed, the federal debt has gone up by a staggering $10 trillion.  That’s $10 trillion in just 7 years.

From 1980 to 2006, when Bernanke became Chairman of the Fed, the US debt went from $1 trillion to $7 trillion.  But think about the fact that he has overseen the debt increase of $10 trillion in just 7 years….

“But remember, Eric, printed money doesn’t add any wealth, it just adds misery.  The continued money printing will just put the world in a worse position over the next few years.  So the US debt is out of control and with no improvement on the horizon.

 

Congress can’t even save $1 trillion over 10 years, and they are adding $1.5 trillion every year.  We also see 50 million Americans in poverty, with 47 million on food stamps.  So the rising stock market has nothing to do with reality, but rather liquidity.  But a rising stock market should end this year as well.

 

Look at what is happening to real people in the US.  If you look at US disposable income from 2001 to 2012, it’s down 78% in real terms.  Of course real terms means vs gold.  Gold is the only true measure of what is happening to paper money.

 

Purchasing power in the US has declined by 78% in the last 11 years.  If you look at the price of homes vs gold they are also down over 80%.  I’ve also looked back since 1970, and from 1970 to 2013, hourly wages and manufacturing in real terms are down 87%.  So all of this so-called increase in living standards is all based on debtUS unemployment is still 23%, with youth unemployment in major cities at 50%.

 

So the real economy in the US is not improving at all.  If you look at the rest of the world, central bank balance sheets are still exploding.  The deficit spending is continuing in all major countries and so all central banks have to print money to finance the deficits.  They also have to print money to defer the bank problems we see turning up everywhere.  In 6 years central bank balance sheets have gone from $5 trillion to $16 trillion, and this is just the beginning.

 

So, again, investors have to ask themselves, what has changed?  Nothing has changed.  Look at Japan which has the biggest debt/GDP in the world.  Now they have just come out and said they will double the monetary base over the next 2 years.  They are going to use every means possible to reach 2% inflation.

 

Eric, all of this will lead to flooding the world with printed money.  Then we can look at the EU.  They are in a total mess.  The latest disaster in Cyprus is just the beginning.  This will happen in many other European countries.  They are all vulnerable.  Look at Slovenia, Italy, Greece, Spain, France, the UK, etc, banking problems will happen in all of those countries as well.

 

When you look at Switzerland and the UK, they are the biggest money printers in the world in relation to GDP.  Also, the Swiss and the UK banking systems are much too big.  Look at Spain on the verge of collapse.  A stunning 97% of the Spanish social security fund is in sovereign bonds now.  This will happen in many other countries.  Governments will force investors to put all of their retirement funds into government securities.  This will especially happen in the US.

So there is no reason for investors in gold and silver to be nervous.  The current price action is absolutely nothing to be concerned about.  I’ve just explained that the fundamentals are there for continued and accelerated deficit spending and money printing.  This will be reflected in a much higher gold price.

Our friend, Jim Sinclair, who understands gold better than anybody has explained the manipulation taking place in the paper market.  This has nothing to do with the physical investment market.  Demand is strong in the physical market.  We are seeing more activity with investors buying physical gold than we have seen for quite some time.  Investors are concerned and therefore they are rightly buying gold.

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