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Dalio On Gold: Buffett Is Making A Big Mistake

Tyler Durden's picture


We discussed Bridgewater's Ray Dalio in depth late last week and his historical perspective on the world we are living through. It appears CNBC has found this intriguing too and the largest hedge fund manager in the world has been espousing his views all morning. Most notably he very concerned at the possibility for social unrest (just as we have pointed out again and again) highlighting the rise of Hitler in 1933 and its parallels to the current social disruptions around the world as global economies sufffer painful deleveragings. His suggestion is that gold "should be part of everybody's portfolio" as he explains the reality of the endgame of fiat monetary systems. As far as Warren Buffett's distaste for the yellow metal, he opines "I think he is making a big mistake."



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Fri, 09/21/2012 - 09:27 | 2817446 Comay Mierda
Comay Mierda's picture

its been a while since the last PM slam down.  and its options expiry day.

Beware the Blythe

Fri, 09/21/2012 - 09:30 | 2817457 GetZeeGold
GetZeeGold's picture



Beware the Blythe


What is my bidding Mistress?


Fri, 09/21/2012 - 09:35 | 2817481 Pladizow
Pladizow's picture

Browns Bottom and Buffets Blunder!

Fri, 09/21/2012 - 09:40 | 2817493 BaBaBouy
BaBaBouy's picture

Notwithstanding Bufflet Or The Paper-Manip Gang...

GOLD $50K Bitchezzzzzzz ...

Fri, 09/21/2012 - 09:45 | 2817521 BaBaBouy
BaBaBouy's picture

"" Beware the Blythe ""


Beware the Good-Folks at AIG...

Fri, 09/21/2012 - 10:04 | 2817629 Thomas
Thomas's picture

I am 55% precious metals; the smack downs smart a little.

Fri, 09/21/2012 - 10:10 | 2817656 Au Member
Au Member's picture

I've been 90% AU/AG since 07, smack downs mean fuck all to me unless they go to $700/oz and $12/oz

Fri, 09/21/2012 - 11:00 | 2817917 Comay Mierda
Comay Mierda's picture

its been a while since the last PM slam down. and its options expiry day.

Beware the Blythe

hate to say it, but I told you so

Blythe's algo army will be blessing us with a nice dip soon


Fri, 09/21/2012 - 09:41 | 2817508 Pladizow
Pladizow's picture

Dalio is 10 years late, why listen to him now when he says, " should be a part of everyones portfolio, BUT NOT IN A BIG WAY."

At least it only took him 10 years to be half right!

Fri, 09/21/2012 - 10:07 | 2817646 Thomas
Thomas's picture

Do you know that he had no gold? I am thrilled that we are past the "crazy bastard" phase of the bull market and into the "smart money" phase (Dalio, Einhorn, Paulsen, China, Russia, India, Vietnam,...). I am waiting for the gold detractors to go all in. Then I hope to quietly find a better alternative--exit the pool--because the market will then throw the toaster in.

Fri, 09/21/2012 - 10:43 | 2817833 Al Huxley
Al Huxley's picture

Wait for the majority of the general public to jump in - they'll get in after the 'smart money' and that will be when things really get crazy.  I think back to the Bre-ex days in '96 or '97, whenever it was - everybody I knew, people who'd never invested or speculated in their lives, could tell me what gold stock I needed to own.

Fri, 09/21/2012 - 10:54 | 2817875 BoNeSxxx
BoNeSxxx's picture

Buffet only says he isn't bullish on the barbarous relic...

I bet the wrinkled old cadaver is stacking like a mofo under the table.  It's never about what they 'say' they are doing... gotta watch what the hand under the table is doing.

Fri, 09/21/2012 - 12:22 | 2818292 franzpick
franzpick's picture

Hasn't The Oriface of Omaha already demonstrated his PM expertise with his 2005 sale of 37% of the available ag supply, which he accumulated at $6, to Barclay's, at $7.50, for the SLV etf start-up?:

Fri, 09/21/2012 - 14:47 | 2818911 Bananamerican
Bananamerican's picture

"I am waiting for the gold detractors to go all in."

"The Day Of The Denninger"

Fri, 09/21/2012 - 09:36 | 2817486 BaBaBouy
BaBaBouy's picture


Fri, 09/21/2012 - 09:39 | 2817497 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

Note goldbugs "not in a big way"

I took a 50% treasuries, 50% apple position 5 years ago. I saw what the smart money was doing and simply followed suit. A guy like Bernanke doesn't make mistakes with what he buys - thats where I got my guidence, and I've been richly rewarded. Gold simply relies on the greater fool theory, as it doesn't produce anything and isn't backed by a government. Sure markets could stay irrational and gold could go higher in the short term (thats why its ok to have a small position); but in the long term markets always find equilibrium. Thats why I'm getting ready for the biggest wealth transfer in history from unbacked sterile assets like gold to fully government backed assets like treasuries.

Fri, 09/21/2012 - 09:49 | 2817513 Mercury
Mercury's picture

Backed by what?

The full faith and credit of the United States government?
Have you even thought about what that means and what it doesn’t mean?


I’m sure you will get your principal back.

The question is, how many loaves of bread or gallons of gas will you be able to buy with it?


Fri, 09/21/2012 - 10:08 | 2817659 Thomas
Thomas's picture

There was a reporter who claimed that "gold isn't backed by anything but the dollar is backed by the full faith of the US Government." I kid you not. I blew a double-barrelled snot bubble.

Fri, 09/21/2012 - 10:53 | 2817870 Temporalist
Temporalist's picture
Gold not backed by anything!

*this is a special edition of this clip with the remastered soundtrack of Ben and Krug in the background

Tue, 09/25/2012 - 11:54 | 2828133 Precious
Precious's picture


Fri, 09/21/2012 - 09:48 | 2817539 Darth Sidious
Darth Sidious's picture


Fri, 09/21/2012 - 10:12 | 2817660 WhiteNight123129
WhiteNight123129's picture

MDB stop that, you know as I do that the S&P and Treasuries are following exactly the pattern of 1932-1937, the rally is just the uncorking of the pressure inside the deflation scare bottle. Had the Fed not made the mistake of raising the rates in late 1938, the Treasuries would have entered its multi-decade bear market not in 1941 but in 1938. The Fed is not making the same mistake, the bond bubble has just popped, as for Stocks they will do what they did between 1937 and 1950, during the deleveraging phase. Go nowhere, stock will get exciting when we start a new leveraging phase. Everyone here was long equities expecting the uncorking of deflation pressure, but they you get smacked back when monied capital converted back into circulation. Inflation was picking up nicely between 1933 and 1937 until the Fed did its 1938 blunder. 


Fri, 09/21/2012 - 10:32 | 2817781 i love cholas
i love cholas's picture

You're assumption assumes full faith last forever. I recently took a trip to Mexico City and saw churches and cathedrals decorated with gold. The value of that gold that was put in place in the 1500's has only gone up, while the Spanish Armada is under the sea and modern Spain's end game is currently approaching. Gold.Gold.Gold

Fri, 09/21/2012 - 11:08 | 2817970 Biosci
Biosci's picture

I think his assumption is actually quite different.

Fri, 09/21/2012 - 09:30 | 2817464 tocointhephrase
tocointhephrase's picture

More like Blythe beware, your getting squeezed and no its not a hug

Fri, 09/21/2012 - 09:40 | 2817502 Long-John-Silver
Long-John-Silver's picture

The Chinese have programed their gold (and silver) buying computers to automatically BTFD with a vengeance. They are demanding physical delivery too. I personally think the days of massive take downs  have come to an end.

Fri, 09/21/2012 - 09:56 | 2817576 Comay Mierda
Comay Mierda's picture

I hope you're right.  I just keep thinking about what happened to oil on monday.  its an election year and the margin-hiker-in-chief would really appreciate it if tell-tale signs of inflation are suppressed

Fri, 09/21/2012 - 09:47 | 2817530 WhiteNight123129
WhiteNight123129's picture

What really matters is the 30 years bonds, once it gets to 4 to 4.5 % lift a bit of your gold because a higher embedded inflation expectation relieves Bernanke from printing. As long as we at at 3% or close you are safe, Bernanke keeps printing. Soros Sold in 2011 because of that, he thought Bernanke had managed for force inflation expectations up and managed to force the dishoarding of cash from the Rich and the Corporations.



Fri, 09/21/2012 - 19:35 | 2819570 WhiteNight123129
WhiteNight123129's picture

Exactly my point, the Fed can not afford Japan who lost control of yield curve. Banking School XIX century, if you start to have long bond moving upward you create a dishoarding and prices rise forcing spending.Today that would the rich and corporations forced to spend by manipulating inflation upwards.

Fri, 09/21/2012 - 09:28 | 2817449 Cognitive Dissonance
Cognitive Dissonance's picture

"His suggestion is that gold 'should be part of everybody's portfolio'......"

The rush into Gold by the great unwashed will be breathtaking in its scope and ferocity. Buy early and often. And don't forget Silver, the junior Gold.

Fri, 09/21/2012 - 09:45 | 2817522 midtowng
midtowng's picture

The sheeple (at least those in America) are still unaware that gold is a good investment. By the time they figure it out it'll be during the parabolic blow-off when gold is no longer such a good investment.

Fri, 09/21/2012 - 10:30 | 2817596 WhiteNight123129
WhiteNight123129's picture

Gold is not an investment, it is a commodity form of money. Investment is monied capital (bonds and stocks) the stuff levered on top of the circulation, the cycle is the move from one to the other and back and forth. The cycle are very short under metallic standards, but very long under elastic money. Silver is money printing, it is hoarded when Gold is overvalued into jewelry and forks and stuff, and is printed, dishoarded and coined into money when there is a credit contraction so that people can helpf the shortfall of circulation in relation to credit, or used by shrewed investor in order to buy assets at a discount. A bimettalic standard is always more stable for this reason. A monomettalic standard does NOOOOOTT  allow you the extra tire in the back of your truck. A repressed bullion flow with artificially low price of Gold and on top of that a split between the bank issue and deposit bank is castrophic stuff. The Bank of England between 1829 had no issue acccomodate the flow of bullion out of England, it came right back by 1831-1832. Once conditions became better the Silver is hoarded back, or the Gold is hoarded back if there is a big Silver mine discovery in between. A bimettalic standard with free-flow of bullion, bank of issue and deposit bank under the same roof with large level of bullion in the bank is absolutely superb stuff (French monetary standard until 1873 was the most stable stuff out there.)



Fri, 09/21/2012 - 12:59 | 2818448 WhiteNight123129
WhiteNight123129's picture

Circular argument, everything is circular in Finance.


Fri, 09/21/2012 - 09:53 | 2817558 Ricky Bobby
Ricky Bobby's picture

Ray Ray talks of beautiful deleveraging, well what is going to be beautiful will be driven by Extraordinary Popular Delusions and the Madness of Crowds. When the shiny explodes into the consciousness of the masses it will make iMania and Black Friday look tepid.

Fri, 09/21/2012 - 09:28 | 2817453 edb5s
edb5s's picture

What happened with gold this morning?  Up to 1785.

Fri, 09/21/2012 - 09:30 | 2817462 Cognitive Dissonance
Cognitive Dissonance's picture

"You hear that Mr. Anderson? That is the sound of inevitability."

Fri, 09/21/2012 - 09:41 | 2817509 Freebird
Freebird's picture

More of the masses waking up

Fri, 09/21/2012 - 09:29 | 2817458 EnglishAustrian
EnglishAustrian's picture

Buffet may well be right for him. He can see ways that his wealth can be invested for a better return than a short term improvement in gold price.

Personally, I am not so confident in my abilities so for safety have bought silver and held onto what gold I have.

Fri, 09/21/2012 - 09:36 | 2817485 LawsofPhysics
LawsofPhysics's picture

My guess is that Buffet does not give a shit.  He has more than enough for his remaining days.

Fri, 09/21/2012 - 10:12 | 2817684 MachoMan
MachoMan's picture

Realistically, what more do you need than a bathtub, rubber ducky, Mr. Bubble, and a CNBC anchor to rub and tug?

Fri, 09/21/2012 - 10:35 | 2817802 WhiteNight123129
WhiteNight123129's picture

BUffet knows only the leveraging cycle assets (bonds and stocks).

Fri, 09/21/2012 - 09:29 | 2817459 tocointhephrase
tocointhephrase's picture

There you have it Warren is a BIG mistake!

Fri, 09/21/2012 - 09:30 | 2817461 Dr. Engali
Dr. Engali's picture

So is everybody waiting in line for your new iPhone 7?

Fri, 09/21/2012 - 09:36 | 2817469 Cognitive Dissonance
Cognitive Dissonance's picture

I don't know about you, but I'm waiting for QE7.

<Am I in the wrong line? Cus I can move if I am.>

Fri, 09/21/2012 - 09:38 | 2817495 Dr. Engali
Dr. Engali's picture

Let's see we are technically at Qe5 when you seems like we get a new qe around each new iPhone release. But since we now have qe to infinity I don't know how we are going to keep track.

Fri, 09/21/2012 - 09:54 | 2817570 Cognitive Dissonance
Cognitive Dissonance's picture

I proposed numbering it like the early Windows OS versions.





Each time they increase the monthly amount of the never ending purchases (or they change the purchases to stocks, ETF's etc) we can change the number to the right of the decimal.

The Fed's last bullet to the head (large checks in the mail to each household/person, most likely through its proxy the US government) will be the official QE 4.0

Fri, 09/21/2012 - 10:00 | 2817602 fuu
fuu's picture

Did you include cash for clunkers in your count?

Fri, 09/21/2012 - 11:02 | 2817932 Dr. Engali
Dr. Engali's picture

iPhone 3gs

Fri, 09/21/2012 - 09:30 | 2817463 falak pema
falak pema's picture

could be that WB's aversion to gold goes back to his father's days; he was a true gold bug!

There is an element of father-son rivalry in this; it sounds Freudian in its origin! 

Fri, 09/21/2012 - 09:34 | 2817467 kridkrid
kridkrid's picture

rise of Hitler in 1933 and its parallels to the current social disruptions... - This book was written nearly 30 years ago and it's been at least 20 years since I read it, but it was interesting at the time and more true by the day. 

Fri, 09/21/2012 - 09:45 | 2817520 Long-John-Silver
Long-John-Silver's picture

Buy and read a copy of Hitlers Mein Kampf. You'll be astounded at the parallels to the current political policy.

Fri, 09/21/2012 - 22:45 | 2819781 topspinslicer
topspinslicer's picture

Leonard Peikoff is affiliated with the great Ayn Rand and was a regular guest on the Mark Scott radio show which I always enjoyed listening to in my formative years

Fri, 09/21/2012 - 09:33 | 2817472 new game
new game's picture

the 99 percenters will just have to settle for the poor mans(and woman-not to be sexist)gold...

finally something makes sense!

Fri, 09/21/2012 - 09:36 | 2817474 dwdollar
dwdollar's picture

How's that "beautiful deleveraging" working? Doesn't sound good if he's talking about Hitler 2.0.

Fri, 09/21/2012 - 09:42 | 2817483 kito
kito's picture

dalio he feels that the banking institutions getting bennybucks bailouts, while u.s. citizens absorb their losses in the form of trilions in debt, is "beautiful deleveraging"....he openly stated that the u.s. SHOULD NOT WORRY ABOUT TOO MUCH DEBT, BUT SHOULD WORRY ABOUT AUSTERITY................why, again, are we listening to dalio??????????

Fri, 09/21/2012 - 09:44 | 2817519 EvlTheCat
EvlTheCat's picture

Because it goes along with the meme.

Fri, 09/21/2012 - 09:52 | 2817545 WhiteNight123129
WhiteNight123129's picture

BEcause he understands leveraging ==> converting circulation into monied capital leveraged assets (bonds and stocks) and Deleveraging selling monied capital (Bonds and stocks) and make them enter the circulation. Hard Assets are linked to circulation, leveraging up represses them, and deleveraging push them up, old school banking of XIX century knows that. When you are in non banked system (David Hume) you have absolutely no cycle of leveraging and deleveraging and commodities are flat for centuries.


Fri, 09/21/2012 - 10:16 | 2817713 kito
kito's picture

very nice whitenight, however the fed is leveraging for the benefit of insolvent banks, while the deleveraging is carried on the shoudlers of the citizens through forced bankruptices and foreclosres....and in increases in unsustainable u.s. debt levels......and this is beautiful to you whitenight?.....are you for real? 

Fri, 09/21/2012 - 09:58 | 2817583 oddjob
oddjob's picture

At what price point will you eat your shoes on Gold?

Fri, 09/21/2012 - 10:03 | 2817619 kito
kito's picture

hyperinflation..............until then i stand where i stand................

Fri, 09/21/2012 - 10:26 | 2817714 WhiteNight123129
WhiteNight123129's picture

Kito, do not be silly, a war can do the trick in forcing paper cash hoarders to dishoard. If more people do what you do this is the end (circular). Help the FEd, buy Gold and short a bit of long bond to scare the Rich and Corporations into inflation and force them to spend their fiat cash (hopefully not all in inflation assets because that is hyperinflation). What they will spend (capex, 2 Ipads per person in rich households whatever stuff they like it does not matter) and increase circulation as a result.


Fri, 09/21/2012 - 10:32 | 2817783 jimmyjames
jimmyjames's picture

hyperinflation..............until then i stand where i stand................


There's a great contrary indicator-

Someone who believes gold is all dollar related-

We haven't had hyper-inflation yet and gold keeps powering up-unseen by the ones who misunderstand deflation/credit destruction and gold-

Fri, 09/21/2012 - 09:38 | 2817490 new game
new game's picture

i say fuck wb and his big inside game.  maybe he is loosing contol slowly but surely as true market forces flaten his returns.

bigger they are the harder they fall and his day has arrived!

Fri, 09/21/2012 - 09:41 | 2817507 GetZeeGold
GetZeeGold's picture



Dude......he's a chick.


Fri, 09/21/2012 - 09:40 | 2817503 dick cheneys ghost
dick cheneys ghost's picture

My guess is that Buffett loves gold...............but he would never say that in public...........

Fri, 09/21/2012 - 10:11 | 2817672 kridkrid
kridkrid's picture

his father did... google buffett and the gold standard.

Fri, 09/21/2012 - 10:04 | 2817517 WhiteNight123129
WhiteNight123129's picture

We need a much higher price of Gold and higher 30 years yield (rising inflation expectations) to force large corporations and the Rich to dishoard and spend their cash into the economy.

Fri, 09/21/2012 - 10:30 | 2817775 kito
kito's picture

but whitenight, why would the rich want to spend it when they can ride the coattails of bernakes "leveraging" of the s&p to the moon????.......dust off your nose, its covered with textbook ink...step outside....perhaps you will see that there isnt a damn thing corporations can spend their money on regardless of yields because the u.s. has massive structural, not cyclical,  problems that are being masked by "beautiful deleveraging"...............

Fri, 09/21/2012 - 10:52 | 2817840 WhiteNight123129
WhiteNight123129's picture

Two reasons

1. The rally in stocks is the latest part of the relief rally from deflation scare like 1932-1937

2. Each QE is less and less effective for stocks, and the latest QE is the last one, not more new thing to salivate about for Equity ignorants, the only thing the stock market can digest is when he will stop and why he would do that and what that means. They have not figure it out yet.



The best that can happen now is not a plunge in stock (deflation scare annhilated with printing and shorting of long bond), but stocks moving sideways and long bond YIELD  creeping up slowly. That will discourage the rich, they will not know what to do with their cash and will get more and more tempted to indulge into spending their capital. Corporate margins have peaked.

Fri, 09/21/2012 - 09:50 | 2817535 Atlantis Consigliore
Atlantis Consigliore's picture

Hitler. HITLER?  Gold GOLD Now? I thought Hitler got foreclosed and sold the Camero!!!, isnt he pushing porn in Florida?

No?  oh,  REEL real estate again... in florida condos 10 cts on the dollar, for rentals....SECURITIZED THRU FRAUDIE SOMETHING IN WASHINGMACHINE,  LOL. 

iTS BOTTOMED calling all cars, calling all cars, Real Estate has bottomed, got you red hots.

THE BS ON THE NOTHING BC SHOW, OR FRAMER SAYS SO....LOL,     Ill bid on the camero.....

Fri, 09/21/2012 - 09:56 | 2817578 DavosSherman
DavosSherman's picture

Hysterical, now the momos 10 years late to the party, the fucking momos who missed out on doubling their and their clients money 3 times, are now calling the rest of the momos out for making a misstake.

Last year, I told you that “a housing recovery will probably begin within a year or so.” I was dead wrong

He then goes on to bash gold like the Va#ina-wall-decorating-NYU-Professor whose investment research firm is $2 million in the red.  I think gold has doubled since he began bashing it.  How he teaches teenage girls or gets anyone with an IQ larger than their shoe size to listen to him on CNBS is another great mystery.

Buffett continues:

The major asset in this category is gold, currently a huge favorite of investors who fear almost all other assets, especially paper money (of whose value, as noted, they are right to be fearful). Gold, however, has two significant shortcomings, being neither of much use nor procreative. Link to rest on Zero Hedge.

Being fearful is a serous understatement .  According to Ludwig Von Mises:

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

Fri, 09/21/2012 - 10:01 | 2817607 Seasmoke
Seasmoke's picture

whats Buffett care about Gold.....he will be dead before he needs it

Fri, 09/21/2012 - 10:03 | 2817621 fuu
fuu's picture

So should we be sewing it into our clothes Dal-dal-dalio?

Fri, 09/21/2012 - 10:04 | 2817627 NRGIsFree
NRGIsFree's picture

Does not seem to know much about the recent history of gold as an investment. He said, "Gold is a little bit better than cash". Lets look at the last ten years of gold as compared to cash or even the crock market. How can a guy in his position miss this. Oh well, get it while it's cheap!

Fri, 09/21/2012 - 10:09 | 2817661 riphowardkatz
riphowardkatz's picture

he made a big mistake, he is making a bigger mistake

Fri, 09/21/2012 - 19:39 | 2819581 WhiteNight123129
WhiteNight123129's picture

In the last two months the mistake grew bigger.

Fri, 09/21/2012 - 10:09 | 2817664 larz
larz's picture

The oriface of Omaha wrong!? no way he has piles of paper assets and obama's ear!

Fri, 09/21/2012 - 10:34 | 2817792 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Behind the scenes "The Liar of Omaha" is probably buying physical gold with both hands.  Well, with one hand anyway, with the other holding an ice cream cone for effect.


Fri, 09/21/2012 - 10:45 | 2817839 Al Huxley
Al Huxley's picture

Bingo - when he tells you he has no gold, I think he's full of shit.  He's way to tied in to NOT be into gold, just doesn't want the lemmings following just yet.

Fri, 09/21/2012 - 10:34 | 2817789 Element
Element's picture



Didn't this guy say the US is, "... having a beautiful deleveraging ..."?

He must have meant Iceland.

Fri, 09/21/2012 - 10:49 | 2817860 booboo
booboo's picture

I have lived a long time and have seen many uber wealthy shit shoveling meglamaniacs being chased down runways, to their armoured cars and limos only to be cut down by the mass of pissed off serfs and what do they find? a sack of dollars, (when dollars meant something) and drumroll................GOLD BARS.

Don't kid yourself, Buffet owns physical, he will never admit it because it threatens his paper kingdumb.

Fri, 09/21/2012 - 11:03 | 2817898 giovanni_f
giovanni_f's picture

Buffett is a paper-addicted high finance profiteer. He uses to breed his deals with his banker buddies and corrupted politicians (what tautology) including the rest of those execution yard demons and operating thetan level 8 crowd behind the curtain. As a class they are not only parasitically living off the current system in a practical sense. They are spiritually committed to what they regard as a divine order within which they just do the work of god. They are simply following orders. Gold as of yet does not fit the dogma.

Fri, 09/21/2012 - 12:17 | 2818275 dadichris
dadichris's picture

What do we want? Social Disruption! When do we want it? Now!

Fri, 09/21/2012 - 12:22 | 2818289 resurger
resurger's picture

Fuck Warren B

Fri, 09/21/2012 - 13:23 | 2818536 akak
akak's picture

There is not enough Viagra in the world to make me do that.

Fri, 09/21/2012 - 12:40 | 2818361 RiskAverseAlertBlog
RiskAverseAlertBlog's picture

You can't eat gold, and in the rising rate environment central bank hyperinflation is sure to bring, this along with accelerated shutdown of physical production capacity (just like in Wiemar Germany), it's hard to imagine gold will not succumb to the effects of a relentlessly deepening desperation, and so in no way "keep up" with shortage-induced price increases crushing wealth's purchasing power. Most people will disagree with this view, however most people do not take into account accelerated shutdown of physical production capacity (like that occurring presently in the oil refining business) on account of a hyperinflationary policy errantly aiming to sustain a debt burden that otherwise is unsustainable. Per Buffett, his principled view toward gold is downright patriotic to anyone familiar with the economic perspective espoused by Alexander Hamilton and those like-minded Americans who over subsequent generations subscribed to the American System of Political Economy. As such I am proud to call gold a "barbaric relic" and presently find its risk of being mixed with tungsten steel better taken in a Smith and Wesson.

Fri, 09/21/2012 - 13:15 | 2818499 WhiteNight123129
WhiteNight123129's picture

Read Elbridge Gerry Spaulding about the views of Hamilton, then we can talk.


Fri, 09/21/2012 - 13:57 | 2818594 Anasteus
Anasteus's picture

I don't believe a single word Buffet is saying. He's a smart investor bluffing all those naive ones staring devoutly at him. It's laughable to be watching hot polemics over fake topics he is spreading over again. You may bet, any advice he allegedly gives to focus on something is most likely ripe for selling, just to maximize profit out of the upcoming rumour. I would bet his house is stuffed with gold up to the roof.

Fri, 09/21/2012 - 13:42 | 2818616 ChacoFunFact
ChacoFunFact's picture

1913 . . . TO . . . 1934
"Redeemable in Gold on demand at the United States Treasury or in Lawful money, at any Federal Reserve Bank." "Will pay to the bearer on demand one dollar."

1934 . . . TO . . . 1968
"This note is legal tender for all debts public and private and is redeemable in lawful money at the United States Treasury, or any Federal Reserve bank." "Will pay to the bearer on demand one dollar."

1968 . . . TO . . . 1998
"This note is legal tender for all debts, public and private"

Fri, 09/21/2012 - 15:40 | 2819031 NuYawkFrankie
NuYawkFrankie's picture

Re Dalio... very concerned at the possibility for social unrest and  another  HITLER -OMG!!!!!!!!!!!


I'm getting sick & tired of the likes of Dildo Dalio - those who profit enormously from gaming/ripping-off the system - getting all touchy-feely and concerned about the posiiblity for social unrest- which, when it occurs, will have been caused in large part by the likes of Dalio.

And, of course, just like any flim-flam misdirection artist Dildo Dalio just has to dig-up Hitler and wave his corpse in our faces - lest we have the temerity to object to the parasitic hedge-fund scammers.

And another thing: who gives a Flying F*** what that insufferable blowhard Buffet says???

Fri, 09/21/2012 - 16:12 | 2819151 rex-lacrymarum
rex-lacrymarum's picture

'....should be part of everybody's portolio, but not in a big way'

Au contraire, it should be the bulk of one's portfolio weighting. 

Fri, 09/21/2012 - 23:01 | 2819794 ZH11
ZH11's picture

Hitler came to power because of the depression?

What a massive simplification of the result of a 30 year problem which conveniently ignores some of the key roles 'capitalism' had in his ascension to power.

There is no Hitler in gestation just more shitbag hedge fund managers and bankers promising more solutions which enrich themselves at the cost of public purse.


Sun, 09/23/2012 - 09:55 | 2821827 razsil
razsil's picture

It is concerning someone like Dalio says that the conditions we are facing are similar to those that made it was possible for someone like Hitler to get into power. Dalio is pointing to the overall condition that is ready to accept someone extreme as leader, not necessarily to the specific person.


We should listen to what he says. When Trousers and Sunsets Don’t Lie - - quote quotes his statement about the need to find the truth, it is for a reason. 


Dalio is the best in understanding his environment and where it is going. We should all listen to him and take his warning very seriously.

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