Warren Buffett Said Gold Is ‘Just About the Last Thing’ He’d Want to Own — He’d ‘Much Prefer’ Acres of Land, an Apartment or Candy Over the Precious Metal

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Warren Buffett was once asked if gold still has a place in modern investing. The answer? This is “the last thing I want to own.”

The question was raised in 2005 Berkshire Hathaway annual meeting. One participant wanted to know whether Buffett, one of the world’s most influential investors, should acknowledge gold’s historical role as a financial foundation, especially at a time of rising inflation, asset bubbles and instability. Buffett didn’t deny the risks, but he didn’t compromise on the metal either.

“I’d rather own a 100-acre tract near here in Nebraska, a condominium or an index fund,” he said.

For Buffett, it all comes down to utility. In his words, gold produces nothing. “If you owned gold you would have paid $20 in 1900 or thereabouts,” he said. “Then in a hundred years we’ll say you have $400. In the meantime, you’ve paid the insurance and maybe some storage costs.”

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During the same period, the Dow Jones Industrial Average rose from around 60 to over 11,000, providing steady dividends in the process. “A farm has utility. An apartment building has utility. A business has utility,” Buffett said.

Then he added a comparison that became one of his most memorable. “I’d rather be able to sell people a pound of sugar 20 years from now,” he said. “And if they are trading in seashells, I will take the appropriate number of shells for it instead of paper money.”

Buffett is not against material assets. He only prefers those who produce.

He currently lives in the Omaha house he bought in 1958 for $31,500. Today, the value of this property is estimated at approximately $1.4 million, according to Zillow. Although he didn’t alter it to make a profit, the house stands as a quiet example of long-term appreciation.

He also praised residential real estate more broadly. One 2012 CNBC interviewIf he could buy “a few hundred thousand single-family homes” with 30-year mortgages, he said he would. He called them “a very attractive asset class” and called fixed-rate loans “best instrument in the world“

His criticism of non-productive assets also extended to cryptocurrency. Buffett “Produces nothing” What is said about Bitcoin. “You just hope the next guy pays more.”

In 2020, some investors were surprised to see: Berkshire Hathaway announced a $565 million position Barrick Gold, one of the largest gold mining companies in the world. However, the stock was short-lived. Analysts viewed this as a tactical move by portfolio managers, not a reversal of Buffett’s views. Most of the shares were sold within a few quarters.

Arrrived is a platform backed by Jeff Bezos that allows anyone to invest fractional shares of income-producing real estate For as little as $100. It matches the productive assets Buffett has spent years emphasizing. Although Buffett himself does not own a large real estate portfolio, he has been clear about the value that comes from assets that actually produce output.

Buffett doesn’t base his investments on scarcity or sentiment. He’s looking for cash flow, utilities, and long-term output (agricultural land, apartments, and even sugar).

Gold, he said, “didn’t do much good.” And he thinks there’s “no reason why it won’t work well in the future.” That’s why he lists it as “the last thing he wants to have.”

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This article Warren Buffett Says Gold Is the ‘Last Thing’ He’d Want to Own – Says He’d ‘Much Rather’ Have Acres of Land, a Condo, or Sugar over Precious Metals originally appeared Benzinga.com