Warren Buffett and ‘the new calculus of gold’

The Spellman Report/Lew Spellman

“In a wealth-accumulating economy there is always demand for an ultimate store of value for wealth preservation. In finance terms, there is always a demand for some asset for which an investor takes no default risk, nor inflation risk, and can be obtained and sold on liquid markets. For decades, U.S. Treasury debt took over from gold as the market’s preferred store of value.”

USAGOLD note:  Eight years ago University of Texas economist and former White House economic advisor Lew Spellman predicted financial institutions that previously shunned gold would become one of its biggest markets. We found this article while researching another topic and thought it worth passing along in light of recent events as reported in the September edition of News & Views. Coincidentally, Spellman’s article begins with a mention of Warren Buffett’s former aversion to the yellow metal.


Repost from 9-21-2020

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