Even though the tycoon has no taste for gold, he still invests in precious metals. In other words, Christian says, Berkshire's shares in Barrick “are relatively negligible for both Barrick and Berkshire Hathaway, and BH is a long way from having what portfolio models suggest is effective exposure to gold mining stocks. And in this, for Christian reasons, it is no different from Adam Smith, who wrote in his 1776 classic, The Wealth of Nations, that “a person's wealth is not measured by the amount of gold, silver and cash one has in the safe, but rather by the amount that has been invested in assets that produce more wealth, that is, in companies. Many first-time gold investors respond to Gold Eagles or Maple Leafs advertisements and switch to rare coins.
Although Buffett has spoken in the past that owning physical gold was not a good investment because (incorrectly stated) it does not yield returns or dividends, Christian maintains that it can and does so for expert investors. In early 1998, another investor who only wanted to invest in gold called a company that widely advertises Gold Eagles.