Gold prices have surged over 65% year-to-date to nearly $4,350 (£3,237) per ounce, as investors and central banks pile into the precious metal amid sticky inflation, macroeconomic risks, trade wars, and stock market volatility. The uncertainty has boosted the safe-haven appeal of the precious metal, which has a universal demand, high exchangeability, and limited supply.
However, legendary investor and Berkshire Hathaway chair Warren Buffett has long voiced concerns about gold as a long-term investment. He explained his scepticism in a 2011 Berkshire Hathaway shareholder letter, describing the precious metal as 'neither of much use nor procreative,' adding that gold does not generate cash flow or create value over time.
