Buffett is correct. Gold just sits there and won't truly appreciate.   But it doesn't decline --unlike paper currencies--either.  It holds its value. 

Talking about forever unproductive, the same distorted argument can be made about insurance. Does this mean Buffet is going to close down his cash cow GEICO ( Government Employees Insurance Comapny)?

As for China buying gold instead of worthless treasury notes, our empire-building politicans could soon be learning a painful lesson in humility.