Saturday, May 5, 2012

Charlie Munger: Gold is Only for Jews in 1939 Vienna

Warren Buffett partner Charlie Munger went on a vicious attack of gold, in Omaha, Nebraska before the start of the Berkshire Hathaway annual shareholder meeting, where Buffett is Chairman and CEO and Munger is vice-chairman.

"Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939,but I think civilized people don’t buy gold, they invest in productive businesses," Munger told CNBC on Friday the day before the Berkshire meeting.

Munger's comments show a complete elitist Keynesian view that promotes central government as the answer to the world's problems. It is also curious that Munger references Austria, instead of Germany, since the Anschluss resulted in the effective annexation of Austria into Greater Germany by the regime of Adolph Hitler.

On March 12, 1938, when German troops crossed the border, Austria officially ceased to exist. It became the Greater Germany province of Ostmark.

It is governments that are always at the core of massive deaths and financial destruction. Thus, it is absolutely outrageous for Munger to diss gold at a time when evermore totalitarian measures are put in place in the United States and around the world and, at a time, when central banks, including the Federal Reserve, drive economies on a maniacal course.

Gold is the great insurance against financial destruction caused by central banks and it can become, literally, the ticket away from death. With the way the world is trending, gold should be the first purchase of anyone starting a financial plan.

Munger's anti-gold advice is dangerous, evil and asinine.


  1. Is anger his Kuebler-Ross stage?

  2. Not to mention, completely racially insensitive. Wow.

  3. Ok Mr. Munger. I'll play.

    I am a middle class, "civilized" American. I don't have time to research which "productive companies" are fairly valued or which companies have a risk/reward profile suitable for me and my long term retirement goals.
    How do I invest? If I buy Government debt, I lose due to the very inflation for which all your friends advocate. I certainly don't have enough money to afford even one share of Berkshire Hathaway.
    Hiring an investment manager requires a level of scrutiny rivaling that of researching a "productive company."

    What's a "prole" to do?

    1. Now, I think one could argue civilized people don't buy government debt.

  4. I used the huge money made from buying gold several years ago to buy a house that would have normally been outside of my price range! How civilized and productive was that?

    Where is that graph that was floating around showing the people who bought gold in 2000 or 2001 outperformed Warren Buffett?

  5. The irony is how similar in economic thinking this character is with the Nazis in 1939, not to mention he probably shares a similar view on individual firearm rights and the general role of government in the lives of citizens.

    The elites are terrified that more and more regular people have figured out what a fraud the inflation driven stock market is and how safe physical gold is. Thanks to Ron Paul and the Austrians on the internet, they are being exposed.

  6. Much like his colleague Buffet, Munger (consciously?) misunderstands why gold is so desirable by comparing it to yielding assets. The irony is that their disparaging descriptions of gold reveal its true purpose: it's a highly liquid commodity which has been shown through history to maintain its value relative to all other commodities and currencies. In other words, it's very good money. But don't tell the sheeple that.

  7. Kyle Bass: "Buying Gold Is Just Buying A Put Against The Idiocy Of The Political Cycle. It's That Simple!"

  8. "Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939,but I think civilized people don’t buy gold, they invest in productive businesses."

    Let us rephrase old Charlie - the mouthpiece for the status quo - with the new Charlie that realizes that the world as he knows it, is coming to an end:

    "Gold is a great thing to sew into your garments of you're a family in America in 2012, I think well informed people don't invest in businesses that show profits in inflated fiat dollars that are in reality going broke, they invest in gold."

  9. Haha, check out the wording from his comment:
    "Gold is a great thing ... if you're a jewish family... but I think civilized people don't buy gold."

    Yeah, us civilized people don't buy gold, unlike those heathen barbarian jews who trawl our rivers in longboats and horned helmets, or ride through the steppes with their jewgolian hordes.

    Obviously, the first thing Charlie Munger thinks of when he hears the word jew is the noble savage, with a spear, in the jungle. And wearing lots of gold jewelry, I guess.

  10. I am a California voter. Today's mail brought a lie-filled glossy ad for yes on 32 from a super PAC with "major funding from Charles Munger..."