Why Buffett Derides Gold But Likes Silver

Core Insights - Warren Buffett's investment strategy differentiates between silver and gold, with silver being favored due to its industrial applications and production characteristics [2][6][9] Group 1: Investment Perspective - Buffett made a significant profit of $97 million from his silver investment, highlighting the importance of supply and demand imbalances in investment decisions [3] - The industrial demand for silver is projected to reach 680.5 million ounces in 2024, driven by trends in artificial intelligence and renewable energy [7] Group 2: Industrial Applications - Silver is the most electrically and thermally conductive metal, making it essential in various industries, including medical devices, solar panels, and semiconductors [5] - Over 50% of global silver consumption is attributed to industrial uses, contrasting sharply with gold, where only about 11% is used industrially [8] Group 3: Production Dynamics - Silver is primarily produced as a byproduct of mining other metals, making its supply less responsive to price changes compared to gold [9]