Warren Buffett has been very outspoken about his lack of enthusiasm for gold as an investment. He believes it has little to no value. What Buffett calls a lack of value is actually a lack of utility. He once famously said about gold: “It does nothing but sit there and look at you.” Buffett has never been a fan of gold.
You may not have made the decision to invest in Barrick, but the fact that he wasn't against it is enough for his fans to follow in his footsteps. Since 1972, when private ownership of gold was legalized again, the price of gold has increased by 2,400%. Knowing that gold is an asset, but not a productive one, means that gold can be a store of value, but not an investment. You can still own physical gold directly, but now many investors own gold through exchange-traded funds.
Even so, the general rule among gold lovers is to maintain between 5% and 10% of the value of their portfolio in gold. Warren Buffett's opinion on gold is based on his belief that it does not generate any income or produce any goods or services. He believes that investing in stocks and bonds is a much better way to generate returns over time. He also believes that investing in commodities such as oil and gas can be profitable if done correctly.
The bottom line is that Warren Buffett does not believe that gold is a good investment. He believes that it is too volatile and does not generate any income or produce any goods or services. He believes that investing in stocks and bonds is a much better way to generate returns over time.