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Weekly Touchpoint: Berkshire’s Munger on Bad U.S. Monetary Policy

Posted By Isaac Nuriani |

… And Other Factors Strengthening the Case for Gold

Warren Buffett is famously anti-gold, but that doesn’t mean he or other key leaders of the Berkshire Hathaway empire aren’t capable of recognizing the destructive economic influences that create such a fertile environment for gold investment. On that note, Berkshire’s vice chairman recently railed against the current state of U.S monetary policy, going as far as suggesting it could one day lead to the destruction of the nation.

  • Warren Buffet’s second-in-command, Charlie Munger, recently spoke to CNBC and expressed his displeasure over the same economic trends that precious metals buyers find so troubling. Although Munger did not recommend gold or silver during his conversation with CNBC’s Becky Quick, he went on at some length about “extreme” monetary policy as enacted through historic quantitative easing as well as “dangerous” money printing. Said Munger: “That’s the way the Roman Empire behaved, then it was ruined.”
  • Is our national debt finally an issue since mainstream news says it is? The debt recently topped $22 trillion, and CBS News marked the dubious milestone by detailing “five problems with a $22 trillion national debt,” including burdensome interest payments and lack of a safety net if the economy tanks. The only nations with more debt than the U.S. are Portugal, Italy and Greece, three countries racked by economic turmoil since the Great Recession, as well as Japan, famous for its “‘lost decade’ of economic stagnation.”
  • Citing the anticipated nonperformance of both stocks and bonds over the near term, analysts at Wall Street firm Bernstein recently sent out a note to investors in which they strongly recommended gold. Portions of the note were published by CNBC.com, including Bernstein’s determination that “a material shift in geopolitical risk and a near-record build up in government debt” strengthens “the case for gold.”
  • Bernstein’s note underscores that there’s usually plenty of warning before the stock market stumbles and that when paper assets are out of steam, gold is ready to take the baton and run like crazy. Yet, many investors who know this never make the adjustments that could spare their portfolios when trouble strikes. To learn more about how inaction could be the greatest obstacle to your success, read Augusta’s latest blog article here.

It may be premature to predict the U.S. will go the way of the Roman Empire, but it’s not premature to recognize the destructive effects expansionary U.S. monetary policy has wrought on the economy. Fortunately, gold investment (and silver) is available to offset the damage, but you have to own the precious metals before they can do your portfolio any good. For more information, call Augusta Precious Metals today at 855-242-4121 or visit Augustapreciousmetals.com.

Augusta cannot guarantee, and makes no representation, that any metals purchased by a customer will appreciate at all or appreciate sufficiently to make a profit, and there is no certainty that any metals can be sold for a profit. The future value of the coins you purchase cannot be predicted. You could lose money. Don't invest in Augusta products with money you can't afford to lose. Prices may rise and fall over time or rapidly. Past performance of any coin does not guarantee future results. Premium coins are sold for more than the value of the precious metal they contain. Augusta's prices and buy-back prices are determined and controlled by Augusta. This investment is speculative and unregulated.