Warren Buffett was very vocal about his contempt for gold as an investment. He sees little to no value in that. What Buffett calls a lack of value results from a lack of usefulness. He once said about gold: It doesn’t do anything but sit there and look at you.
Knowing that gold is an asset but not a productive one shows you that gold can be a store of value but not an investment. There are also other ways to own gold, including jewelry, gold bills, derivatives, and funds, such as ETFs, mutual funds, or stocks in gold mining companies. Still, the rule of thumb among gold lovers is to keep between 5 and 10% of your portfolio value in gold.
