Gold Prices Reach All-Time High as Demand Surges Amid Global Unrest
Gold prices have soared to new heights, surpassing $2,400 an ounce on Friday amidst escalating geopolitical tensions in various regions. The precious metal has seen a surge in demand as investors seek safe havens to protect their assets during uncertain times.
However, renowned investor Warren Buffett has been a vocal critic of gold, citing its inability to generate profits and its speculative nature. Buffett, known for his investment in productive assets like businesses and real estate, believes that gold lacks the ability to increase its value over time.
Buffett’s skepticism towards gold dates back to his purchase of 129.7 million ounces of silver in the late 1990s, a move that diverged from his usual investment strategy. He has often referred to gold as a way of “going long on fear,” indicating that its value relies on people’s increasing fear of future uncertainties.
Despite Buffett’s reservations, the current market trends have propelled gold to new heights, marking its third consecutive week of gains. Investors are turning to the precious metal as a hedge against inflation and economic instability in the face of global turmoil.
As tensions continue to rise in the Middle East, Europe, and Asia, the demand for gold shows no signs of slowing down. Whether Buffett’s criticisms will impact the ongoing fascination with gold as a safe-haven asset remains to be seen.
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