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Gold Prices Surpass Rs 90,000 as Investors Seek Safe Haven Amid Economic Uncertainty
Gold has soared to Rs 90,000 per 10 grams in India, drawing attention as a safe haven amidst global economic uncertainties. Despite its rising popularity, billionaire investor Warren Buffett stands firm in his belief that gold lacks value for serious investors.
Lead: In a striking turn of events, gold prices in India have shot up to Rs 90,000 per 10 grams, marking a 17% increase this year. This surge is mirrored globally, where prices have surged past $3,000 an ounce. Investors are flocking to gold as a secure asset amid escalating geopolitical tensions and economic instability. However, prominent investor Warren Buffett remains unconvinced, continuing to argue that gold is an unproductive asset unworthy of value investors’ portfolios.
The Rise of Gold Prices
– **Current Price**: Gold reached Rs 90,000 for 10 grams in India and $3,000 an ounce globally.
– **Year-to-Date Gain**: A remarkable 17% increase highlights gold’s growing allure.
– **Investor Sentiment**: Amid uncertainties, gold is seen as a refuge for many.
– **Political and Economic Instability**: Global trade tensions and climate concerns have heightened economic anxieties.
– **Inflation**: Rising inflation expectations have significantly propelled investors toward gold.
– **Central Bank Purchases**: Aggressive buying by central banks, especially in emerging markets, has boosted gold demand.
Buffett’s Skepticism on Gold
Despite gold’s growing popularity, Warren Buffett, chairman of Berkshire Hathaway, maintains his long-standing skepticism. He asserts that gold does not generate cash flow or economic value and has previously referred to it as “unproductive.” In his 2011 letter to shareholders, Buffett stated:
> “If you own one ounce of gold for an eternity, you will still own one ounce at its end.”
– **Strategic Shifts**: Buffett’s brief investment in Barrick Gold during the COVID-19 pandemic demonstrated opportunism rather than a strategic belief in gold.
Gold’s Role in Investment Portfolios
– **A Safe Haven Asset**: Analysts argue gold’s rise reflects a shift in investor attitudes toward risk, particularly as bonds struggle to yield in inflationary environments.
– **Market Demand**: Amid rising physical premiums in Asia and elevated ETF inflows, gold’s investment significance is highlighted.
Conclusion: While gold is enjoying a historic rally, with significant gains attributed to global economic pressures, Warren Buffett’s refusal to engage with the yellow metal raises pertinent questions about its long-term value in investment portfolios. Whether this trend will shift the perspective of even the most skeptical investors remains to be seen, but for now, Buffett remains steadfast in his convictions.
Keywords: Gold prices, safe haven, economic uncertainty, Warren Buffett, investment strategies, inflation, central bank purchases, India, global markets, asset performance.
Hashtags: #GoldPrices #EconomicUncertainty #WarrenBuffett #Investing #SafeHavenAssets #GoldInvestment
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