Warren Buffett Says Buying Gold Is 'Going Long On Fear,' But Robert Kiyosaki Says 'F U Buffett' And Urges 'Buy More Gold' — Who's Right?

The investment world is rife with differing opinions, especially when it comes to the value of gold as an investment. This divergence is illustrated in the views of Warren Buffett and Robert Kiyosaki, two prominent figures whose perspectives on gold are as contrasting as their investment strategies.

Buffett, the venerable chairman and CEO of Berkshire Hathaway Inc., has long been critical of gold as an investment option. He views gold as an unproductive asset, highlighting its inability to generate income or compound in value over time. 

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“Gold has two significant shortcomings, being neither of much use nor procreative,” Buffett wrote in his 2011 Berkshire Hathaway shareholder's letter. 

The same year, in a CNBC "Squawk Box" interview, Buffett described investing in gold as “a way of going long on fear,” suggesting that people often buy gold out of fear, hoping that its price will rise with increased market uncertainty. 

"If they become more afraid you make money, if they become less afraid you lose money," he said.

In contrast, Robert Kiyosaki, author of the bestselling book “Rich Dad Poor Dad,” embraces gold. He encourages his followers on social media to buy more gold, posting on April 7 on X, "The everything bubble, stocks, bonds, real estate, set to crash. U.S. bankrupt. Save yourself. Please buy more real gold, silver, Bitcoin." 

Known as a “gold bug,” Kiyosaki advocates for gold as a hedge against economic turbulence and inflation. His investment approach is underpinned by a distrust of conventional financial advice and a belief in self-reliance. 

“I don't need to trust Buffett. That's all I'm saying. I trust me. And if you don't trust you, give it to Buffett,” Kiyosaki said during an interview with Vladislav Lyubovny, also known as DJ Vlad.

Kiyosaki has publicly challenged Buffett’s investment philosophy, once dramatically holding up a 1964 silver dollar to underline his point about the enduring value of precious metals. 

“This, here, is a 1964 silver dollar. … So this little silver coin today is worth $10. I can go to any coin dealer and change it for $10. So F U Buffett,” he said, emphasizing that, unlike other investments, precious metals retain value. 

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While Buffett acknowledges the prowess of assets like stocks and real estate for their ability to generate returns, Kiyosaki positions gold as a more reliable safeguard against the unknowns of the economy. His criticisms extend to Buffett’s method of investing others’ money rather than his own, suggesting a fundamental difference in their approaches to financial risk and personal wealth management. Kiyosaki often reiterates that his methods aren't for everyone and urges people to do what is best for them. While he leverages debt to buy assets, he acknowledges the average person can't handle debt. 

The ongoing debate between these two investment philosophies raises important questions about risk, reward and personal comfort with uncertainty in financial markets. Ultimately, the decision to invest in gold, stocks or any other asset depends heavily on individual financial goals, risk tolerance and belief in different economic forecasts. Both gold and equities offer benefits and drawbacks, and a balanced investment strategy might include a mix of asset types to hedge against future market fluctuations.

Investment strategies are deeply personal and influenced by a complex array of factors, including one’s economic outlook, personal experiences and emotional responses to market conditions. Whether your future in investing is golden or merely gilded, it's clear that both logic and emotion play crucial roles in shaping investment decisions.

Given the various views and complexities surrounding investment choices, consulting with a financial adviser can be particularly valuable. An adviser can offer tailored advice that considers your financial goals, risk tolerance and circumstances. They can help navigate the noise of contrasting expert opinions to formulate a strategy that best suits your needs, ensuring that your investment decisions are well-informed and aligned with your long-term objectives.

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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.

Jeannine Mancini has written about personal finance and investment for the past 13 years in a variety of publications including Zacks, The Nest and eHow. She is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Mancini believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.