Even though the tycoon has no taste for gold, he still invests in precious metals. Many first-time gold investors respond to Gold Eagles or Maple Leafs advertisements and switch to rare coins. As this issue of Monetary Digest reveals, Certified Mint continues to believe that silver is the best investment of precious metals, and maintains that it will generate greater profits than gold or platinum. In early 1998, another investor who only wanted to invest in gold called a company that widely advertises Gold Eagles.
The fact that Berkshire is now investing in gold can be interpreted as an indication that Buffett expects gold prices to remain high in the long term, since Berkshire Hathaway is not known for its fast investments. The explanation for Buffett's aversion to gold and his enthusiasm for silver is due to his basic principles of value investing. The surpluses of the 1980s supported this position, and the idea that there will always be sufficient supplies of silver available has become an axiom among “sophisticated investors” who ignore the work of the CPM Group, the Silver Institute, Gold Fields Mineral Services and other analytical firms that over the past few years have pointed to a fall in silver stocks. This led analysts to make a double bet, since the famous hedge fund manager had no qualms about his disdain for investing in gold in the past.