Buffet’s Gold Predictions from Last Year Come True

The Financial Post reported that a report written last year by Warren Buffet about the value of gold has proven to be true, saying that much of the value of gold is driven by buying out of fear which does not support long-term growth.

As quoted in the market report:

What motivates most gold purchasers is their belief that the ranks of the fearful will grow. During the past decade that belief has proved correct. Beyond that, the rising price has on its own generated additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis. As “bandwagon” investors join any party, they create their own truth – for a while.

To view the whole Financial Post report, click here.