Gold surges past $3,000 an ounce globally

Gold prices have surged to over $3,000 an ounce globally, and to about Rs 90,000 per 10 grams in India. This rise highlights gold's attractiveness as a safe-haven investment during uncertain economic times. Despite this rally, billionaire investor Warren Buffett remains skeptical about gold's value. Buffett, the chairman of Berkshire Hathaway, has consistently called gold an unproductive asset. He argues that it does not generate cash flows and has no real economic value. In 2011, he emphasized that owning gold offers no growth, saying if you own one ounce, you will still own one ounce forever. Although gold has performed well, especially during financial turmoil, Buffett's views have not changed. In 2020, he briefly invested in Barrick Gold but quickly pulled out, indicating that the investment was not a shift in his long-term stance. He has mocked gold's role as a safety net, pointing out the costs of storing it. Gold prices have risen significantly due to heavy buying by central banks and investors looking for safety amid rising geopolitical and economic risks. Concerns about the U.S. economy, inflation, and consumer confidence contribute to this trend. Central banks, especially in emerging markets, are accumulating gold to diversify away from the dollar. In India, gold has become the best-performing asset this year, with a 17% gain to date, contrasting with losses in the stock market. This highlights gold’s importance in Indian portfolios as a store of value. The ongoing gold rally is seen by some analysts as a shift in how investors view risk. As traditional safe-haven assets struggle, gold is gaining renewed interest. There is increased demand in retail markets, especially in Asia and the Middle East. Despite gold's strong performance, Buffett remains unconvinced. He continues to prioritize productive assets over those he perceives as stagnant. Whether this rally will change opinions even among gold's critics remains uncertain for now.