Why does Warren Buffett shun the glint of gold? Find out why his dismissal of the precious metal might overlook some crucial blind spots that matter for your retirement planning.
Warren Buffett has never been shy about his distaste for gold. The Oracle of Omaha has called it an unproductive asset that "won't do anything between now and then except look at you." His reasoning is straightforward: gold does not generate earnings, pay dividends, or produce anything of value. It just sits there, accumulating storage fees.
For decades, Buffett has built his fortune by investing in businesses that create something, companies that innovate, hire people, and generate profits year after year. In his view, the metal does not produce anything but requires insurance and storage costs. That philosophy has served him well.
But here is the thing about investing legends: even they do not always get it right.
Buffett's track record is impressive, but his stance on gold is not without blind spots. Three historical realities suggest his dismissal might be too absolute.
First, gold has outperformed stocks during several critical periods. Gold has outpaced the S&P 500 in 2025, gaining 48 percent while the index is up 17 percent. During the 2008 financial crisis and the COVID-19 market crash, gold rallied while stocks tanked. When fear takes over, investors turn to something tangible.
Second, inflation eats away at everything, including productive assets. Gold has historically held its purchasing power across centuries, even if it does not pay you to hold it. When currencies lose value, gold tends to maintain it.
Third, even Buffett dipped a toe in the gold pool. Berkshire Hathaway invested around $560 million in Barrick Gold in 2020, though they exited two quarters later. Whether it was Buffett himself or another manager at Berkshire is unclear, but the company saw enough merit in a gold mining operation to make the move.
If you are considering a gold IRA, Buffett's criticism should not be dismissed, but it also should not be gospel.
Gold IRAs come with real costs. Setup fees typically run $50 to $150, with ongoing custodian management fees and storage costs adding $100 to $500 annually. You are also not collecting dividends or interest while you hold physical metal.
The case for gold in retirement is not about beating stocks every year, but about protection when traditional assets stumble. Gold shows low correlation with stocks and bonds, which matters for retirees who cannot afford to wait out a multi-year market slump.
Warren Buffett's aversion to gold makes sense within his framework. He has built wealth by buying businesses that generate cash, not by speculating on metals. But retirement planning is not about following someone else's playbook.
Gold does not have to be an either-or proposition. You can respect Buffett's logic about productive assets while also recognizing that a small allocation to gold might provide a cushion when markets get rough.
The secret is avoiding extremes: do not ignore gold entirely, but do not bet your retirement on it either.
