He's somewhat wrong with that argument though.

Gold always has an intrinsic value, plus is used as a hedge against inflation, which is its real utility.

Just because it is rarely used in daily life doesn't mean it has no value. A Toyota Altis that one uses as a daily driver is not worth more than a Lamborghini that he only uses on weekends simply because it has greater utility.

Blue chip has management risk. Microsoft for example is definitely blue chip yet Steve Ballmer has presided over one of the greatest declines in share price over 5 year period.

Same with Intel and Paul Otellini.

Even property has risks beyond the buyers control.

Whereas with gold unless people suddenly find a previously unknown massive gold reserve or we start mining gold from Mars, it will always have an inherent rarity.

yeah you are right. hence mona lisa's potrait is invaluable.
but only intrinsic value.
but buffett's style is always looking for practical stuff and point of view. which i wholly agree with him.
am not sure gold is hedge against inflation. usually that's applied towards props.

many people like to use Buffet and love to quote him literally as an investment mantra. This is quite misleading.

there are many reasons why he is all out pro-equity guy (at least publicly) and dis-credit gold as a relic of a barbarian....

- very large proportion of Berkshire is in equity.

- most of his wealth derived from dividend which pay lesser tax compare to income tax (that's no surprise why he was backing  Obama's tax increment for the rich last year. Because he is not affected!!)

- As other assets especially commodities, in the US, gains is taxable by capital gain tax. Same logic as the above. 

- His substantial ownership in Merrily Lynn and later BOA earning him entry pass to the US largest big 5 bankers club, together with JP Morgan, MP..... who we are know, close to the FED. And we know that one of the thing FED dislike to see is, any emerge of alternative to fiat system, i.e gold or Bitcoint...

His roles 'require' him to do what he's doing now.......

Gold is probably a better investment than landed prop - unless you can afford to buy cash.

Assume RM100k base investment.

Option A) Use RM100k to invest into gold.
Option B) Use RM100k as downpayment to buy a RM1M landed prop and rent out + cap appreciation.

Option A) = no return except based on cap appreciation. Costs? Low to none, if you keep at home, low cost if you keep it in the Bank (safe deposit).

Option B) = cashflow negative return, so basically you hope for cap appreciation if you want any form of return until the 30 year loan period is up.
Costs?
1) Homeowner insurance.
2) Taxes (cukai pintu, cukai tanah, etc)
3) Maintenance
4) Management fees.

Basically your costs are a lot more than gold and to top it off you get taxes if you sell < 5 years (RPGT).

In both cases your only form of return (within the medium term) is in cap gains.

For gold - further advantages:
a) It is easily transferrable. If touch wood you go bankrupt, just transfer the gold to your family member and no one may be the wiser assuming you do it well. Property? Don't think the bank is stupid.
b) It is portable. If ever you need to leave the country in a hurry, 1 kg of gold is light, concealable and easily brought even on a flight. How are you going to bring your DSTH with you?
c) It can be hid. In a worst case scenario, dig a hole in your garden one midnight and bury the gold - dig it up later. Can you do that with prop? No way Jose.

So yeah, I'd rather buy gold when its low than props when its high.

Read the news. iWatch. 

Btw, do you know what was Citi's price 5 years ago today? $250....not that I'm saying it's a bad investment all the time, btw. If you bought in at the trough of $10.30 you've made 4X.

But if you buy and held at the peak........sounds a bit like prop eh.

I am surprised that you wrote what you wrote as I thought you are the DDD camp. Althou' I stand to be corrected.

I was asking because you were accused earlier of betraying the DDD camp by intending to buy a property! 

BN is gov't, they have lousy management. So, housing price is going to rise some more.

Recommand you: To buy

GST is a political suicidal move, I highly doubted BN will implement it knowing it is the poor rural Malays that help them retain the rule.

Reduced majority for BN. Dont think they dare to implement GST. Having said that I think property price will continue rising but at a slower rate.

bro, don't get to emotional-lah. The GST if it happens will affect all MALAYSIANS.

Really aa bro? If u r holding good props now, dont u think u can ride on GST thing? Income tax will be reduced with substitution of GST. Inflation will go up though. Price of foods will go up too

Well since Selangor was not captured. He might not unleash in Selangor but in Sabah and Sarawak instead.

I hope he does. Now i dont see how property prices may go down. At least for 2-3 years. Yesterday also saw KLCI and RM value surged. Bummer for those didnt take advantage.

Material cost higher--> inflation-->workers demand for higher salary-->boss increase the raw materials price to offset this operation cost (material cost + salary)-->cost of building houses increase-->developer increase the housing price (although it is GST exempt supply).