By Jon Burckett – Senior Portfolio Manager
John Maynard Keynes famously described the gold standard as a “barbarous relic,” and Warren Buffett has pointed out it produces no cash flow or earnings power. Buffett is correct: gold is fundamentally unproductive and sentiment-driven — more akin to a collectible than a stock or bond, impossible to value on cash flows. Nonetheless, gold does have some properties that make it worthy of consideration as an investment. Indeed, global central banks continue to hold 20–25% of their reserves in gold, indicating that they consider it to be a legitimate asset class.
In the pages that follow, we’ll take a clear, balanced look at gold’s role in a portfolio, cutting through common misconceptions and focusing on what truly matters, so you can feel more informed, more confident, and better equipped to make thoughtful investment decisions.
