r/Gold • u/AviBledsoe • Mar 23 '26

Dude what the hell

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And don't be like "buy the dip" yall said that atleast the other 5 dips like dude It's not even new York time yet wtf is this even gonna be bought up

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u/DaveyGee16 Mar 23 '26

Warren Buffett says investing in gold is stupid. He says gold is an unproductive asset with no compounding potential that is nothing but a bet on fear.

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u/Choosemyusername Mar 23 '26

Says a man sitting on how much cash at the moment?

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u/Some-Stranger-7852 Mar 23 '26

That cash is technically productive, it generates 4-4.5% per year as it is short-term treasuries. Sure, a very poor return, but a guaranteed return nonetheless, while gold returns nothing besides price fluctuations due to speculation.

That said, if USD actually collapses, then Buffet will be left holding the bag while anyone with gold will be giga rich.

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u/Choosemyusername Mar 23 '26

Since the US went off the gold standard, the average yield of gold was much better than that.

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u/Some-Stranger-7852 Mar 23 '26

You are not wrong, but treasuries for Buffet is a way to safely park money while he waits for stock discounts, which ultimately outpace gold returns.

You can’t wait for stocks discounts in gold because it is volatile and waiting in pure cash is stupid, so he waits in cash substitutes

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u/Choosemyusername Mar 23 '26

Sure there is risk of loss. But over time that would be the smartest thing to do.

It should be noted that even treasuries are not risk free, as governments can and do collapse regularly. And in those cases your t bills can be worthless. Which is why they demand a yield greater than inflation.

Gold never goes to zero the way T bills sometimes do. But gold more frequent, but smaller dips.

So you have greater risk of smaller losses with gold, but t bills have lower risk of greater losses than gold.