Warren Buffett, in an excerpt from his forthcoming Annual Letter, discusses gold as an investment, likening all the world's gold to a cube approximately 68 feet per side, valued at $10 trillion.
He argues that gold is a poor investment because it produces nothing, pays no interest or dividends, and does not grow earnings. Buffett contrasts this with investing $10 trillion in U.S. cropland and 16 Exxon-Mobils, which would generate trillions in dividends over a century and retain their value.
He concludes that gold's value relies solely on convincing others to buy it at a higher price, whereas productive assets offer intrinsic returns.
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