Warren Buffett has been very vocal about his disdain for gold as an investment. He sees little or no value in it. What Buffett calls a lack of value is the result of a lack of utility. He once said about gold: “It does nothing but sit there and look at you.” Buffett hasn't been a fan of gold.
You probably didn't directly make the decision to invest in Barrick, but the fact that he wasn't against it is more than enough for a seal of approval for his fans to follow in his footsteps. Since 1972, the first year that private ownership of gold became legal again, the price of gold 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.
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