Wednesday, December 1, 2010

Edison on Gold: Fictitious Value & Superstition

From this New York Times article:

"All of the wealth in the world, according to our present standards, may be rendered worthless, by the discovery that gold can be made synthetically."
"That is one way to do it - make it so plentiful that it drowns its fictitious value and drowns the superstition of the people along with it." - Thomas Edison

New York Times article - 1921
Here are some related posts that may be of some interest:
-Munger on Buying Gold
-Thomas Edison on Gold
-Grantham on Gold: The "Faith-based Metal"
-Buffett: Forget Gold, Buy Stocks
-Gold vs Productive Assets
-Grantham: Gold is "Last Refuge of the Desperate"
-Why Buffett's Not a Big Fan of Gold

Gold is not a productive asset.

A good business certainly is.

To me, it makes sense to own productive assets with the long haul in mind. This, of course, includes partial ownership of a good business via common stocks.


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