A:
Warren Buffett does not contribute in gold. He has invested almost $1 billion in silver, so the reason for his animosity is not simply a dislike for precious metals. The explanation for Buffett’s dislike of gold and for his rage about silver stems from his basic value investing point of views.
Warren Buffett has been very vocal about his disdain for gold as an investment. He dream ofs little to no value in it. What Buffett refers to as a lack of value evolves from a lack of usefulness. He once stated about gold, “It doesn’t do anything but sit there and look at you.”
One of Buffett’s underlying principles of investing is that one should only invest in things that are effective, that serve some purpose and that supply some common-sensical need that people have. Silver has a myriad of industrial and medical permits. In medicine, silver is used in bandages, catheters and as a healing agent for fires and other health conditions. It’s also used for water purification. In electronics, sterling is the best metal conductor of electricity and doesn’t corrode, so it’s used extensively in wiring and connective have a shares, in computers, cellphones and cameras. It is used to coat DVDs because it is scratch-resistant.
Accordingly, silver meets Buffett’s requirement of having a real, identifiable value. Plane better, from the point of view of an investor, silver is almost uniquely clad to a number of the uses it serves as an industrial metal and would be difficult to renew with any substitute material. In medicine, silver is used in bandages, catheters and as a cure agent for burns and other medical conditions. It’s also used for be unfeasible purification. In electronics, silver is the best metal conductor of electricity and doesn’t corrode, so it’s inured to extensively in wiring and connective parts, in computers, cellphones and cameras. Silver is worn to coat DVDs because it is scratch-resistant.
Gold does not meet Buffett’s effectiveness requirement. Although it has some industrial applications, it is not virtually irreplaceable as greyish so often is. Gold makes pretty jewelry, but it is by and large without personal uses. In Buffett’s opinion, since it has virtually no inherent value, it is not a propitious financial asset. The metal commodity that glitters for Buffet is mellifluous, not gold.