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Cult of Mac contributor Buster Heine takes the side of Apple in the debate of whether to invest in Gold or Apple on CNBC's StreetSigns with Erin Burnett
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and now two of the most fervent camps on
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Wall Street call it the battle of the
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gold bugs and the Apple bugs they're Die
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Hard they're devoted they're pit bowls
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of passion take a look at why in the
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last 20 years Apple's Shares are up
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[Applause]
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4,000% gold up more than 225% okay so
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apple looks better on that front but
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still Gold's up and is the trend going
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to continue or do all things that go up
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eventually come down whether you're a
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devote or Not Gold bug James de Georgia
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the publisher of the gold and energy
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adviser and author of The Traders great
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Gold Rush joins us extoling the virtue
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of all things happle meantime is Buster
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H blogger for the site cult
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of.com okay great to have both of you
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with us and thanks for for having fun
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and being willing to play with us guys
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we appreciate it Buster let me start
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with you uh it's amazing when you start
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uh looking around on the web for things
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about Apple sort of linking it to a cult
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or a religion um you find things like
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the cover of The Economist with Steve
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Jobs with a Halo uh and that's just the
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tip of the iceberg um there's something
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to this isn't there there there is I
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mean when you're when you're buying
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apple and you're buying into a culture
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Apple sells a whole culture not just uh
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electronic parts but that's what the
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campaigns are all about um you're part
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of you know the best technology the best
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products and everything like that it's
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kind of like an exclusive club that
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people are kind of buying into and you
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you Buster have bought in right I mean
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you've done some strange things uh yeah
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I mean I like I I really enjoy it you
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know camping out for the iPhone it's
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it's an event you know you you're never
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going to see a company like this ever
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again nobody cares about going out and
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buying other computers but with apple
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everybody gets really stoked me and my
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friends every time there's an iPhone
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launch we'll camp out you know 10 p.m.
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the day before it comes out just to have
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fun James uh what about on the gold side
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of things what is it that makes some say
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you know jokingly hey the gold bugs
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right I mean what is it that causes that
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the group to Define itself like uh like
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that well you know for a long time we
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were a little niche part of the uh
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financial markets and you know gold you
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know dragged from 1980 to uh you know 2
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2001 and there was a a disbelief in its
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value as a monetary unit but as we've
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seen over the last 10 years uh there's
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been a you know R A sharp rise in gold
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and depreciation of currencies and uh
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you know people that are gold bugs
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people who believe in gold at this point
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are the ones who believe that uh the uh
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the uh currency situation around the
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world and the debt
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situation that's around the world is so
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out of control that uh that not holding
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some gold in your portfolio is just pure
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you know Folly here here's where I get
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confused though guys because you can't
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both be right over the long term right I
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mean I got Buster here betting that kids
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are going to you know people are going
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to get richer and have all these fancy
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iPhones and I got James saying the world
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might come to an end if he's know if
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gold really goes the roof I totally
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disagree with you the two are not oppos
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wrong well frankly I could see a gold at
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$2,255 and see the Dow you know at
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15,000 or 16,000 what's happening is the
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relative value of both items apple is a
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is a study in what is done right if we
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ran our governments and we ran our
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currency we ran their Federal Reserve
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and treasury like you know the Apple has
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run their company uh you know I would be
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a gold bug it's the fact that they
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haven't run things well that has caused
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that situation so I could see a
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situation where you know gold goes back
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to the the equilibrium of $2,000 plus
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and constant $1
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19980 and still see Apple at $360
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$450 you know a share they're Innovative
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they're creating they're controlling
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their their expenses they have new
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cutting technology it's it you know it's
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a wonderful investment but you need gold
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in your portfolio against everything all
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the other dangers all right bus is he is
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he is he convincing you no I mean I
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think Gold's a great investment for the
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long term but right now you're going to
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be making more money with apple what
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you're seeing kind of like what you said
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with gold it was a niche market Apple
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also was a niche market now they're
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expanding into mainstream it's huge now
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uh people that want to be in technology
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if you want to be looked at as knowing
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what technolog is about really you're
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buying Apple products Apple only has
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room to expand because it was Niche now
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it's mainstream uh you're going to be
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seeing growth for another 3 to 5 years
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from Apple Gold may be a great long-term
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investment I'm not a gold expert but I
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know that Apple's probably one of the
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best bets that you can count on for the
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stock market for the next 3 to 5 years
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now Buster what do you think Steve Jobs
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has done to to make people like you feel
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the way you feel I just wanted to read
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you something these these professors at
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Texas A&M University you know they did a
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study um on how the iPhone became Divine
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and the iPhone was called the Jesus
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phone um and and one of the things they
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they note they say oh Apple was born in
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Humble surroundings just like Jesus jobs
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was struck down and resurrected just
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like Jesus and Apple stores are
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miraculous clean temples of Holiness I
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mean it is sort of amazing that that
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that this person has such a following
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because it is a lot about him
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individually isn't it it is I mean you
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have other people behind the scenes that
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also contribute with apple you have John
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IV you have uh Tim Cook uh Phil Schiller
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they're all great people I mean Steve is
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the salesman you know a lot of people at
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Apple kind of used Steve as kind of like
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a Leonardo da venci type of of the
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modern day I mean he's everything that
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he touches turns to Gold whether it's
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computers music with the iPods now the
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iPad for netbooks soon to be television
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um really he can't do any wrong I mean
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he's a modern day genius and uh
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nothing's going to really stop it Apple
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until Steve kind of uh abandons ship
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which isn't going to happen cuz it's his
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baby he's a tech Messiah is what it
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sounds like the way you're talking about
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James uh in Gold do you have any
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frustration about all the people who are
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coming into your world right there's the
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True Believers like you and then there's
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the people who are buying gold bars
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because they see them advertised on TV
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do you resent those people because
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they're not real
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Believers no I don't resent them in fact
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you know I think that it's an
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inescapable conclusion I think you know
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pointing to Steve Jobs as a as you know
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the U icon of of Apple you know gold has
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a lot of people behind it as well that
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are in the problems namely politicians
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all around the world Federal Bank uh
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Reserve Bankers Central Bankers you know
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policy makers and they're making all the
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wrong decisions so you know we have a a
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big tail wind I don't know about the
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short-term potential but I wouldn't
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count gold out okay well James Buster
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thanks very much to both of you and for
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and for playing everyone let us know
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which investing Church would you join
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apple or gold we'll be
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back
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