By Tom Bradley
In response to my post last week (A Simple Risk Management Tool to Avoid the Next Bubble), a friend and former partner, Dan Lewin of Lewin Capital Management, sent me a clip on gold. It came from a conversation between Ben Stein and Warren Buffett for Fortune magazine.
When asked, "What about gold? Is this a classic bubble or what?", the Oracle of Omaha responded with the following:
"You could take all the gold that's ever been mined, and it would fill a cube 67 feet in each direction. For what that's worth at current gold prices, you could buy all -- not some -- all of the farmland in the United States. Plus, you could buy 10 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?"