Warren Buffett Still Doesn’t Like Gold
On Monday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, increased $3.80 to close at $1,468 per ounce, while silver (NYSEARCA:SLV) futures for July dipped 6 cents to finish at $23.96.
Both precious metals continue to trade sideways this month, after logging a disastrous performance in April. Gold declined almost 8 percent last month, but Warren Buffett is still not interested in the precious metal.
The chairman and chief executive officer of Berkshire Hathaway (NYSE:BRKA) recently said, “If gold went to $1,000, I wouldn’t be a buyer. If it went to $800, I wouldn’t be a buyer. It’s never interested me. If you go back to 1965, Berkshire was at $15 and gold was at $35, so you could’ve bought two shares of Berkshire for an ounce of gold, a little more than two shares. And so far, two shares of Berkshire’s been better,” according to Bloomberg.
Of course, the price of gold was fixed at $35 an ounce at that time, and a more appropriate comparison would include a currency such as the U.S. dollar against gold.
By the end of the trading day, the SPDR Gold Trust (NYSEARCA:GLD) edged slightly higher, while the iShares Silver Trust (NYSEARCA:SLV) dipped almost 0.50 percent. Gold miner (NYSEARCA:GDX) Barrick Gold (NYSE:ABX) jumped 1.75 percent, while Newmont Mining (NYSE:NEM) increased 0.21 percent. First Majestic Silver (NYSE:AG) declined 1.4 percent on Monday.
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Disclosure: Long EXK, AG, HL, PHYS