Buffett somehow gave the impression that he hated the gold medal and bonds. This is merely a misconception that the uneducated have formulated. The point that Buffett was trying to make was simple, money idol becomes money wasted. Gold represents a medium, a currency, a means of exchange. Buffett has no concern with his capital (his currency), he cares about his return, his gain. Idol principle is merely an obligation, because one must find another place to put it to good use (another investment). Buffett has returned to the basics of investing, the ideals that have made him successful. These same ideals made those before him millions and will make those after him billions. It is this idea that money should be used to make income and gain. Yes gold has had a gain for a time being, but is this sustainable like an industry like oil, which we are dependent on into the future? The answer is no, means of currency fluctuates over time, just ask those who bought gold at $250. My point is not to say gold, fixed income, or even storing money under your mattress has no purpose. Rather, my point was to bring at the ideals which Buffett was conveying in his statement, the basics of investing. It is these basics that led us astray in the past (look at 2008). Buffet was looking at the long term future of gold, where it would be in ten years. What he was doing was making the masses aware of the bubble, and by all means ride the bubble. Just make sure that stop is handy.
“Concentrate your energies, your thoughts and your capital. The wise man puts all his eggs in one basket and watches the basket.” – Andrew Carnegie
