Suffice to say, Warren doesn't think much of gold as an investment class.
The key point - highlighted by KD is:
He (Buffet) can’t fathom how an investor could chose the cube over the other portfolio of productive assets. Then he points out this reality:
“Beyond the staggering valuation given the existing stock of gold, current prices make today’s annual production of gold command about $160 billion. Buyers — whether jewelry and industrial users, frightened individuals, or speculators — must continually absorb this additional supply to merely maintain an equilibrium at present prices.”
I'm inclined to agree with Buffet. Gold is not an investment, it is merely a directional bet on a useless asset. You could make the same bet on, say, nice wine. At least if that bet goes bad you could still drink the stuff.