Buffett snubs gold for shares

Billionaire investor Warren Buffett would rather invest in a robust business than gold, despite the precious metal soaring to all-time highs above $1,500.

Buffett told shareholders at Berkshire Hathaway's annual general meeting that "gold really does not have utility" and is not the way to create lasting wealth,CNBC reports.
 
He added: "I would bet on a good producing business to outperform something that does not do anything."
 
With all the gold in the world, Buffett said he could buy 10 Exxon Mobils, all the farmland in the US and have $1trn left over.
 
Charlie Munger, Berkshire Hathaway vice chairman, said: "There is something peculiar to buy an asset that will only really go up if the world goes to hell."
 
The billionaire investor also said oil and other dollar-denominated commodities will gain in price over time, although he said there are better opportunities to gain money from common stocks or depressed bonds.
 
In terms of currencies, Buffett believes the US dollar and most other foreign currencies will lose value over time, but said it is unlikely the firm will make another big currency bet, as he does not have a strong enough conviction.
 
However, Buffett added he had a short position in two currencies in 2010,  one of which was the Australian dollar, generating $100m.