Howard Marks, co-founder of Oak Tree Capital, recently offered sharp criticism of gold investing, asserting that the status of gold as a store of wealth is seriously overrated.

In Marks's view, the core issue is that gold does not generate cash flow. Unlike assets like stocks and bonds that can produce regular income, gold's value entirely depends on the subjective judgment of market participants. In other words, there is no objective valuation basis supporting the gold price, let alone any so-called intrinsic value. He used an analogy, comparing it to "The Emperor's New Clothes"—everyone pretends to see something, ultimately falling into collective self-deception.

Historical data also supports this view. Even if economic logic at a certain period seems reasonable, once a crisis hits, gold prices can also plummet significantly. Therefore, claims that gold can preserve value are actually just a circular argument based on "people believe it will preserve value."

However, to be fair, recent gold prices have indeed been rising. Central bank gold purchases and geopolitical tensions have boosted demand, with gold prices expected to increase by 7% in 2026. But within Marks's framework, none of this changes the fundamental issue that gold lacks valuation support—prosperity without a real value floor will eventually revert to rationality.

This perspective also offers insights into innovative assets like Bitcoin: what truly constitutes the real value of an investment? How far can consensus alone carry it? These are questions every investor should seriously consider.