Warren Buffett criticizes gold as non-productive asset, prefers investments that generate income

From Yahoo Finance: 2025-06-18 10:54:00

Warren Buffett, known as the “Oracle of Omaha,” has been vocal about his views on gold as an investment, stating it has no utility and is not a productive asset. He holds similar skepticism towards Bitcoin, calling it “rat poison squared” in past statements.

Buffett’s investment philosophy focuses on assets that generate income and compound wealth over time. He categorizes investments into productive assets, scarcity-based assets like gold, and currency-based assets. He argues that gold falls under the second category, with no utility or value creation.

Despite Buffett’s criticism, gold has surged in 2025, reaching record highs above $3,539 per ounce. This increase is driven by factors like inflation, geopolitical tensions, and concerns about central bank policies. Buffett sees gold as a hedge against fear, acknowledging its value in uncertain times.

Buffett’s critique of gold highlights the psychological nature of its value, dependent on collective fear. Berkshire Hathaway, his conglomerate, focuses on productive assets like Apple and Coca-Cola, emphasizing long-term wealth creation over speculation. His advice is to invest in assets that generate real value.

As investors turn to gold amid market volatility, Buffett’s words serve as a reminder to prioritize assets that create value. He advocates for investing in businesses that provide consistent returns and long-term financial security, rather than relying on the unpredictable nature of fear and sentiment.

Read more: Warren Buffett Doesn’t Care How High Gold Goes, He Isn’t a Buyer