"Civilized people don't buy gold"
According to this article Warren Buffet's partner Charlie Munger recently declared
"Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939," the Berkshire vice chairman said, "but I think civilized people don’t buy gold, they invest in productive businesses."
Well, in a perfect world I agree with the billionaire.
In a perfect world investing in businesses that employ people and create wealth is a good thing.
But I don't live in a perfect world, do you?
Munger lives in a billionaire's utopia where his wealth is so vast that a little inflation here or there will have zero effect on his life.
And worse, Munger and Buffett have sheltered their assets from inheritance and other taxes by funding family foundations, and then proposed raising taxes on the rest of us.
In my world inflation exists and the value of the dollar is decreasing.
Tax rates matter.
I'm not endorsing an asset allocation that would make Midas proud
but it doesn't hurt to diversify your portfolio and own a smidgen of gold.