Investment mogul Warren Buffett holds no gold in his $140 billion fortune, and this is the reason behind it.
Warren Buffett Steadfast in Gold Skepticism Amid Economic Uncertainty
Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has maintained his stance against investing in gold, considering it a non-productive asset. Buffett's reasoning is that gold does not generate income or cash flow, and its value depends solely on someone else paying more for it in the future.
In 2011, Buffett famously stated that gold "won't do anything, except look at you," emphasizing his belief that gold is primarily driven by economic uncertainty and investor fear, rather than fundamental productivity. This sentiment is echoed in his more recent comments, where he described gold as a "way of going long on fear."
Buffett contrasts gold with assets that produce goods, services, or income streams, which align better with his value investing philosophy. He argues that productive assets, such as farms and businesses, are superior long-term investments compared to gold.
Despite some temporary investments in gold mining stocks during times of economic volatility, Buffett's core rationale remains that gold "just sits there" without generating income. This principle is rooted in his belief in investing in assets that create tangible economic value rather than relying primarily on price appreciation due to market fears or speculation.
The current global economic landscape, marked by rising US interest costs and a weakening US dollar, has vindicated Buffett's predictions about economic fears being fueled by Trump's tariff-led trade conflicts, fears of US inflation, and a weakening of the dollar. The US interest burden on a debt of $36.93 trillion has grown messier, with over $1.02 trillion paid in interest so far in 2025.
The price of gold has seen significant fluctuations over the years. It peaked at $1,800 in an unspecified year and fell back to $1,000 by 2014. However, over the past fourteen years, the price of gold has more than doubled, and over the past five years, it has increased by over 90%. Currently, gold trades around $3,400 in international markets, and the US dollar index has slipped nearly 4% so far in 2025, which strengthens the gold price.
However, the gold boom seems to be cooling down as central banks' gold demand shows signs of decreasing. This trend, coupled with Buffett's consistent skepticism, suggests that the appeal of gold as an investment may be waning in the face of more promising opportunities in productive assets.
Despite the allure of gold, Buffett does not own any gold, reinforcing his commitment to his investment philosophy and his belief in the superiority of productive assets over non-productive ones like gold.
[1] Buffett, W. (2011). Berkshire Hathaway Annual Shareholders Meeting. [2] Buffett, W. (2019). CNBC Interview. [3] Buffett, W. (2020). Yahoo Finance Interview. [4] Buffett, W. (2021). Bloomberg Interview.
- Warren Buffett, who believes gold is not productive, reiterated his skepticism towards gold as an investment in 2021, calling it a "way of going long on fear".
- In contrast to gold, Buffett advocates for investing in assets that generate income and cash flow, such as farms, businesses, and productive assets like stocks.
- Despite temporary investments in gold mining stocks during volatile markets, Buffett prefers assets that create tangible economic value, rather than relying on price appreciation due to market fears or speculation.
- The current economic landscape, characterized by rising US interest costs and a weakening US dollar, has fueled economic fears due to Trump's tariff-led trade conflicts, concerns of US inflation, and a dollar weakening.
- Despite gold's price increase over the past fifteen years, its value has consistently relied on market fears and speculation rather than its fundamental productivity, as Buffett has argued.
- In a business landscape that offers promising opportunities in productive assets, Buffett's consistent skepticism and the decreasing demand for gold by central banks suggest a waning appeal of gold as an investment.
