The gold price recntly surged to over US$4,350, people are lining up to buy bullion, and Warren Buffett’s sitting tight.
There’s a lesson in that.
While gold fever sweeps across headlines, the world’s most famous investor is doing what he’s always done: staying calm, patient, and focused on the long game.
Gold is back in fashion
The gold price has been hitting fresh record highs as investors seek safety in a world still wrestling with inflation, government debt, and geopolitical tension. Across social media, footage of queues outside bullion dealers has gone viral, as everyday savers try to secure a slice of the yellow metal.
For ASX investors, exposure is as simple as tapping ‘buy’ on exchange-traded funds like Global X Physical Gold (ASX: GOLD) or BetaShares Gold Bullion ETF Currency Hedged (ASX: QAU).
GOLD gives investors direct exposure to the price of gold in Australian dollars. Each unit is backed by physical bullion, meaning the unit price moves closely with gold’s value, plus any movement in the Aussie dollar. This unhedged approach can work in your favour if the gold price rises while the Australian dollar falls.
QAU, on the other hand, offers a currency-hedged version of the same idea. It aims to track gold’s global price movements without the influence of currency swings. That means you’re getting a “purer” gold exposure, though with slightly higher management costs.
However, while gold has regained its shine, history reminds us that not everyone is convinced it’s the ultimate store of value, and one of the loudest sceptics is Warren Buffett.
Warren Buffett’s view on gold
Buffett’s scepticism of gold is well known. In his 2011 shareholder letter, he wrote that gold “will not do anything between now and then except look at you.” Unlike a farm that produces crops or a company that generates profits, gold’s value depends entirely on what the next buyer is willing to pay.
That doesn’t make gold worthless. It has decorative and industrial uses. And, most relevant to today, it can serve as a hedge when trust in fiat money falters. But Buffett’s preference has always been for productive assets — businesses that compound earnings over time.
If you’d held an ounce of gold for 30 years, you’d still have one ounce. Its value would have increased a bit over 995% (pretty good). If you’d owned shares of Berkshire Hathaway (NYSE: BRK.A) or (NYSE: BRK.B), your investment would have multiplied more than 2,400%. (much better). That distinction — between owning something that produces and something that sits — sits at the core of Buffett’s philosophy.
Buffett’s steady hand
As gold breaks records, so too are equity markets. The S&P 500 and ASX 200 are both hovering near all-time highs, climbing a wall of worry through 2025. Investors have pushed markets higher despite trade tensions, inflation that refuses to fade, and endless geopolitical noise, proof that fear often makes more headlines than long-term impact.
Periods like this tend to divide investors. Some chase what’s worked, others rush to cash or gold, trying to guess exactly when the tide will turn. However, as Warren Buffett reminds his shareholders, “predicting rain doesn’t count, building arks does.”
When markets run hot, Buffett doesn’t panic or predict. He prepares. That has meant trimming where optimism runs too far, building cash reserves, and waiting patiently for better risk–reward setups.
This mindset has carried him through every major cycle. From the flash crash in 1987 to the dot-com bubble, the GFC, and the 2020 pandemic crash, Berkshire Hathaway was ready with cash when others were scrambling.
Buffett’s calm isn’t rooted in pessimism; it’s rooted in discipline.
Perspective for Raskals
Gold can keep shining as uncertainty lingers, but investors don’t need to chase it.
Chasing returns in any asset is just FOMO in disguise.
Buffett’s playbook offers a steadier reminder. The greatest wealth builder of the past century hasn’t been gold or cash. It’s been ownership of businesses that produce and grow profits over time.
Investing isn’t about guessing where the gold price or the market will be next month. Wealth building is about compounding patiently, reinvesting profits, and staying calm when others rush for the hot stocks or the bullion dealers.
It’s perfectly fine to hold some cash and wait if that suits your temperament. It’s also reasonable to own a little gold if you believe currency debasement will persist. What matters most is avoiding the trap of FOMO — jumping between strategies or chasing whatever’s working right now.
History shows the greatest wealth builder of the past century has come from owning productive businesses and letting time do the heavy lifting. Preparation beats prediction. Productivity beats speculation. And patience — the trait Buffett prizes most — remains the rarest commodity of all.
