Since the days of the ancients, gold has been prized, coveted and viewed throughout the world as an asset with real inherent value. It’s still highly esteemed today and investing in gold is considered variously a hedge against inflation, a tool for diversification and a currency in its own right.
But is gold a good investment?
Many goldbugs cite the troubling depreciative nature of fiat paper currencies that aren’t backed up by anything real. How valuable can a currency be, they say, if you can print it in unlimited supply?
Warren Buffett, the CEO of Berkshire Hathaway (tickere: BRK.A, BRK.B) and perhaps the greatest investor of all time, understands that fear. Gold investors, he says, are “right to be afraid of paper money. Their basic premise that paper money around the world is going to be worth less and less over time is absolutely correct. They have the correct basic premise. They should run from paper money.”