“[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.”
Warren Buffett, 1988
When people forget the past, they’re doomed to repeat it. In financial markets, they repeat it with other asset classes.
Amid the stock market turmoil of 2008, commercials began appearing on CNBC for brokerage Lind-Waldock. “Bought the wrong stock again,” a sad, morose looking guy says to a friend. She advises him to invest in commodities. He moans something along the lines of, “What do I know about ...