Billionaire veteran investor and former Chief Executive Officer (CEO) of Berkshire Hathaway, who has not been a fan of gold, said that he would take farmland and seven of oil major Exxon Mobil’s instead of having gold, reported the news portal Economic Times.

Warren Buffett said that if one took all the gold in the world, it would roughly make a cube 67 feet on a side worth somewhere around $7 trillion, marking up to a third of the value of all the stocks in the United States.

“I will say this about gold. If you took all the gold in the world, it would roughly make a cube 67 feet on a side…Now for that same cube of gold, it would be worth at today’s market prices about $7 trillion – that’s probably about a third of the value of all the stocks in the United States,” said Buffett, reported the news portal.

He said that people may call him crazy but he would take farmland and the Exxon Mobils anyday over investments in gold.

“For $7 trillion…you could have all the farmland in the United States, you could have about seven Exxon Mobils (XOM), and you could have a trillion dollars of walking-around money…And if you offered me the choice of looking at some 67 foot cube of gold and looking at it all day, and you know me touching it and fondling it occasionally…Call me crazy, but I’ll take the farmland and the Exxon Mobils,” Buffett reportedly said once.

Gold prices fall

CME Group data shows that the gold prices dropped 8.25% or $438.80/oz to $4,879.60/oz on Friday’s trading session, compared to $5,318.40/oz at the previous market close. According to media reports, CME Group raised its margins on Comex gold and silver futures after prices suffered their biggest slides in decades.

CME Group’s margin hike, along with heavy profit booking, was the reason behind the fall of the precious metals on Friday’s market.

Fear of gold

As per earlier reports, Warren Buffett said that gold is a way of going long on fear, and it is a “pretty good” way of going long on a position from time to time.

“Basically, gold is a way of going long on fear. And it’s been a pretty good way of going long on fear from time to time, but you really have to hope people come afraid in a year or two years than they are now,” said Warren Buffett, reported the news portal TheStreet.

He also said that investors make more money when people are afraid and lose money when people are less afraid, so gold doesn’t produce anything.

“If they become more afraid, you make money, and less afraid, you lose money. But the gold itself doesn’t produce anything,” said Buffett, according to the news portal’s report.

Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.