{"id":12984,"date":"2025-10-27T16:52:43","date_gmt":"2025-10-27T16:52:43","guid":{"rendered":"https:\/\/kngadvisors.com\/?p=12984"},"modified":"2025-10-27T17:51:01","modified_gmt":"2025-10-27T17:51:01","slug":"paradoja-oro-activo-inutil-indispensable","status":"publish","type":"post","link":"https:\/\/kngadvisors.com\/en\/paradoja-oro-activo-inutil-indispensable\/","title":{"rendered":"The Enduring Paradox of Gold: Why a \u201cUseless\u201d Asset Remains Indispensable"},"content":{"rendered":"<p><strong>Monday, October 27, 2025<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"has-text-align-center\">Audio in Spanish<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"La paradoja perdurable del oro por qu\u00e9 un activo \u00abin\u00fatil\u00bb sigue siendo indispensable\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/3Cmczjaw1zU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"has-text-align-center\">Audio in English<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"The Enduring Paradox of Gold Why a \u201cUseless\u201d Asset Remains Indispensable\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/ombgv4Tnh8c?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n<\/div>\n<\/div>\n\n\n\n<p>Gold occupies a peculiar position in modern portfolio construction, simultaneously dismissed as an unproductive relic and coveted as an essential hedge against uncertainty. Warren Buffett has famously derided the metal for its lack of utility, observing that it generates no cash flow, pays no dividends, and contributes nothing to economic output. Yet despite this compelling arithmetic, gold has commanded human fascination for millennia and continues to attract capital from sophisticated investors and ordinary savers worldwide.<\/p>\n\n\n\n<p>This enduring appeal reveals something profound about gold\u2019s true utility: in a world of monetary experimentation and geopolitical instability, the absence of counterparty risk represents a feature rather than a deficiency. Gold\u2019s practical use lies not in what it produces, but in what it preserves.<\/p>\n\n\n\n<p><strong>The Ancient Appeal That Defies Modern Logic<\/strong><\/p>\n\n\n\n<p>Gold\u2019s monetary history stretches back over 5,000 years, predating written language and organized financial markets. Ancient Lydians minted the first gold coins around 600 BC because gold possessed characteristics that other commodities could not replicate: scarcity, durability, divisibility, and universal recognition.<\/p>\n\n\n\n<p>What\u2019s remarkable is how little this calculus has changed despite technological advancement. Gold remains scarce, with global production growing at roughly 1.5% annually while money supply growth routinely exceeds this by multiples. It remains indestructible, with virtually all gold ever mined still in existence. It remains universally liquid, tradable everywhere without need for language, legal systems, or technological infrastructure. These properties explain why central banks continue to accumulate gold reserves at the fastest pace in decades.<\/p>\n\n\n\n<p><strong>The Safe Haven Reality<\/strong><\/p>\n\n\n\n<p>Gold\u2019s designation as a \u201csafe haven asset\u201d reveals a more nuanced reality than simple correlation statistics suggest. Gold performs its protective function most reliably during periods of currency debasement, geopolitical upheaval, and systemic financial stress. The 1970s stagflation saw gold appreciate from $35 to over $800 per ounce as inflation ravaged purchasing power. The 2008 financial crisis triggered a sustained rally as central banks deployed unprecedented monetary stimulus. More recently, gold reached new all-time highs as government debt ballooned and geopolitical tensions intensified.<\/p>\n\n\n\n<p>The pattern reveals gold\u2019s essential character: it serves as insurance against monetary and political disorder rather than against generic market volatility. When corrections stem from fears about currency stability, sovereign debt sustainability, or geopolitical conflict, gold tends to fulfil its protective mandate.<\/p>\n\n\n\n<p><strong>Buffett\u2019s Critique and the Productivity Fallacy<\/strong><\/p>\n\n\n\n<p>Warren Buffett\u2019s critique deserves serious engagement. His argument is economically sound: productive assets like businesses and farmland generate cash flows that compound over time, while gold sits inert. A dollar invested in the S&amp;P 500 in 1980 would have grown to approximately $75 by 2024, while the same dollar in gold would have reached perhaps $45.<\/p>\n\n\n\n<p>Yet this comparison commits a category error. Gold isn\u2019t meant to maximize returns but to minimize certain risks. The relevant comparison isn\u2019t gold versus equities over a 40-year period of relative monetary stability, but rather gold\u2019s performance during periods when portfolio protection proves most valuable. During the 2008 financial crisis, while the S&amp;P 500 declined over 50%, gold appreciated. During the 1970s stagflation, while stocks delivered essentially flat returns, gold multiplied twentyfold.<\/p>\n\n\n\n<p>The practical utility Buffett dismisses manifests precisely when his preferred productive assets face existential challenges. When currencies collapse, gold preserves purchasing power. When governments default, gold maintains value. This isn\u2019t theoretical abstraction but practical reality demonstrated throughout modern history.<\/p>\n\n\n\n<p><strong>Gold as Portfolio De-Risking<\/strong><\/p>\n\n\n\n<p>The case for gold rests not on maximizing returns but on modifying portfolio risk in ways traditional diversification cannot replicate. A conventional stock-bond portfolio provides diversification within paper assets, all sharing exposure to monetary policy and financial system stability. Gold introduces an asset with fundamentally different return drivers, benefiting from conditions that threaten traditional portfolios.<\/p>\n\n\n\n<p>Gold provides liquidity during crises when other markets seize up. It requires no counterparty to fulfil obligations. It faces no bankruptcy risk, no refinancing risk, no regulatory risk. These characteristics become invaluable during tail events when diversification fails and correlations surge.<\/p>\n\n\n\n<p>Gold\u2019s appeal across millennia stems from a utility that transcends Buffett\u2019s productivity framework. It offers something increasingly rare: an asset with no counterparty risk, no political risk, and no existential dependence on complex financial systems. The question for investors isn\u2019t whether gold produces cash flows, but whether their portfolios adequately account for scenarios where paper assets and institutional promises prove insufficient.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div style=\"height:31px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><strong>We would like to thank <a href=\"https:\/\/news.dominion-cs.com\/es\/\" target=\"_blank\" rel=\"noopener\">Dominion Capital Strategies<\/a> <\/strong>for writing this content and sharing it with us.<\/p>\n\n\n\n<p><em><strong>Sources: <\/strong>Bloomberg, Yahoo Finance, Marketwatch, MSCI. <\/em><\/p>\n\n\n\n<p><em><strong>Copyright<\/strong> \u00a9 2023 Dominion Capital Strategies, All rights reserved.<\/em><\/p>\n\n\n\n<p><em><strong>Disclaimer: <\/strong>The views expressed in this article are those of the author as of the date of publication and do not necessarily reflect those of <strong>Dominion Capital Strategies Limited<\/strong> or its related companies. The content of this article is not intended to constitute investment advice and will not be updated after publication. Images, videos, literary quotations, and any material that may be subject to copyright are reproduced in whole or in part in this article on the basis of fair dealing, applied to news reporting and journalistic commentary on events.<\/em><\/p>\n\n\n\n<div style=\"height:34px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div style=\"height:32px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading has-text-align-center\">To begin receiving financial advice and learn more about secure investment opportunities in the market<\/h4>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-fill\"><a class=\"wp-block-button__link has-white-color has-text-color has-background wp-element-button\" href=\"https:\/\/kngadvisors.com\/en\/contact-us\/\" style=\"background:linear-gradient(135deg,rgb(0,255,246) 0%,rgb(17,17,61) 90%)\" target=\"_blank\" rel=\"noreferrer noopener\">Contact an advisor<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>The gold paradox explains why this seemingly useless asset remains indispensable in investment portfolios in the face of financial uncertainty.<\/p>","protected":false},"author":2,"featured_media":12986,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[18],"tags":[44],"class_list":["post-12984","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-noticias","tag-mercados-bursatiles"],"_links":{"self":[{"href":"https:\/\/kngadvisors.com\/en\/wp-json\/wp\/v2\/posts\/12984","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kngadvisors.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kngadvisors.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kngadvisors.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/kngadvisors.com\/en\/wp-json\/wp\/v2\/comments?post=12984"}],"version-history":[{"count":0,"href":"https:\/\/kngadvisors.com\/en\/wp-json\/wp\/v2\/posts\/12984\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kngadvisors.com\/en\/wp-json\/wp\/v2\/media\/12986"}],"wp:attachment":[{"href":"https:\/\/kngadvisors.com\/en\/wp-json\/wp\/v2\/media?parent=12984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kngadvisors.com\/en\/wp-json\/wp\/v2\/categories?post=12984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kngadvisors.com\/en\/wp-json\/wp\/v2\/tags?post=12984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}