NEW YORK (Commodity news world): Warren Buffet's distaste for gold is well known and even after a 10 year bull market, most investors are amazed when Buffet not only refuses to buy gold but goes on to thrash it.
And with gold being increasingly considered as a currency, what exactly is Buffet's worth in terms of gold? The below graphic shows Buffet's Berkshire Hathaway priced in gold (chart courtesy: www.azizonomics.com):
In a recent letter to the shareholders of Berkshire Buffet states this long-standing view of gold- the fact that it has no intrinsic value and "being neither of much use nor procreative”. And with the current gold stock valued at $9.6 trillion, Buffet argues that one could buy all of US crop farmland and 16 Exxon mobils, assets that will easily outperform gold over the next 100 years.
Though, it remains to be seen if Buffet is eventually proved right on his view of gold, it cannot be contested that in the current economic environment, gold is believed as a safe haven. And the value of an asset is directly linked to the strength of investor belief.
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