The so called Oracle of Omaha, Warren Buffett has lately been expressing his opinion on virtually every investment subject under the sun. When he jumped on board the Obama tax wagon the media started to swoon over him. He got more ink in the month following his support for higher taxes than he had in his entire career. This was flattering to the point he wanted more. The once humble Nebraskan quickly morphed into an opinionated newsmaker loved by supporters of big government. It’s hard not to let years of success go to your head.
His recent negative comments on gold titillated the Wall Street and Washington establishment. Gold bugs seethed with resentment. However, Mr. Buffett didn’t mention silver in his latest barrage of opinions. That’s probably because he’s the dumbest silver investor in history. At one time he owned 37% of the worlds known silver supply. In May 1998 he purchased 130 million ounces of silver at an average price of $6.00. He sold it in 2006 for $7.50 an ounce. If he had held it until 2010 he would have made a profit of $5 billion. He commented in 2006 that “I bought early and sold early. Silver was my fault.”
Rarely can a person be an expert in more than one field. One subject is the limit for most people. Nevertheless, experts in one field allow their egos to fool them into thinking they are experts on a wide variety of subjects. Mr. Buffett should hire someone to follow him around and whisper in his ear, “Remember silver.”