This statement says it all in a nut shell. Gold has no intrinsic value, i.e. no utility. The irony is that most who are currently investing in gold are doing so in the hopes that it will survive a global melt down. Gold is worthless in the midst of chaos. I've had this argument with my father many times. He thinks because he has some physical gold stashed away that he will be able to “buy bread” when everything collapses. I ask him, “Do you think you'll just be able to waltz down to Safeway and fork over some gold for bread unscathed in that scenario? How will the starving hoards who have no gold react to that... old man?” He still can't answer that. I've pondered this “gold rush” for some time now and I can only concur with Buffet. Gold has no value. You can't eat it. You can't clothe yourself in it. You can't build with it. You can't defend yourself with it. You can't DO anything with it but look at it. When everything crashes so will gold. The only thing of value at that point will be tangible items of utility: food, land, implements, livestock, guns and ammo, etc. In the best case, gold can only preserve and unknown amount of your wealth AFTER a global melt down. And that's only IF you have it physically, you survive the period of the melt down, and it is once agreed upon as having some value there after. Good luck.
How many other scenarios in America, have a higher probability than the “starvation” scenario?
High Inflation?
Unstable economy?
Volatile dollar?
Energy shortage?
Stock Market collapse?
THAT is what gold is good for.
Frankly, if I cannot drive down to the grocery and get food, I'm out of luck (sans the pantry - and my cat), so gold growing 10-30% per year is pretty good. I like it.