Gold has been a popular investment option over the past few years. Although it’s had a great run-up value over the past decade, one wonders, how far will it go and why isn’t Warren Buffett jumping on the train?
I’m not an expert on this, but at face value, the run up on gold seems to be based on fear and emotion, not intrinsic value.
Warren doesn’t invest in Gold and doesn’t see the value since it doesn’t produce anything, unlike farmland or oil companies. Gold won’t put a roof over your head, feed you, clothe you, or do anything other than look pretty. It can go in and out of style, and has a horrible long term historic rate of return.
So in the end, I’m heeding the advice of Warren Buffett, and staying out of gold. It may just end up being the next bubble.
