Berkshire Hathaway's Warren Buffett Softens Stance on Gold

For decades, Warren Buffett has been famously skeptical of gold, criticizing it as a "non-productive asset" that earns no interest and produces no income. He's preferred companies with cash flow, dividends, and tangible growth potential. However, his stance is quietly evolving in today's market where long-held assumptions are being challenged daily.

While Buffett hasn't held a press conference announcing "Buy gold," his actions—and the context around them—speak louder than words. His $100 billion cash pile isn’t just a safety net—it’s a strategy that suggests caution, hedging, and preservation. And now, more analysts and market strategists believe gold fits perfectly into that mold.

Buffett's Caution Tells Us

Buffett's legendary discipline—especially his refusal to jump into market fads—is precisely why his subtle turn toward gold matters.

"This is not a time to be making big bets"—David Rosenberg, a leading strategist, has said this and is turning to gold as a buffer against economic shocks. When someone who has called gold "a pet rock" starts allocating capital toward gold-related assets, it’s time to pay attention. Even if he's not backing up the truck, Buffett's shift reflects the broader truth:

Gold is no longer a fringe asset. It’s becoming a cornerstone of modern portfolios.

Why Gold—And Why Now?

According to reports, gold is now being recommended by a new wave of strategists as a necessary component of any well-balanced portfolio. This includes retirees, institutional investors, and yes—even traditional stock market devotees. Let’s break it down:

• Inflation Hedge: With inflation still sticky and real interest rates uncertain, gold remains one of the most reliable stores of value.

• Geopolitical Tensions: From wars to political instability, global risks are pushing more investors into safe havens.

• Dollar Diversification: As nations reduce their dependence on the U.S. dollar, gold continues to gain favor in international reserves.

• Supply Constraints: Unlike fiat currency, gold supply is finite—adding to its long-term scarcity value.

Even David Rosenberg has said this is "not a time to be making big bets"—and is turning to gold as a buffer against economic shocks. Gold is breaking records, crossing the $2,400 mark, and many of the forces Buffett warns about—rising inflation, economic volatility, central bank missteps—are front and center.

It’s worth remembering: Berkshire Hathaway made headlines in 2020 for buying shares in Barrick Gold, one of the largest gold mining companies in the world. Although that position was later closed, the move itself was historic—it broke Buffett’s decades-long avoidance of any association with gold.

Fast forward to 2024 and 2025: Many of the forces Buffett warns about—rising inflation, economic volatility, central bank missteps—are front and center. Berkshire Hathaway's Warren Buffett made headlines in 2020 for buying shares in Barrick Gold, one of the largest gold mining companies in the world.