By Fabi Lara, The Next Big Rush
Gold has always been a symbol of wealth, safety, and tradition. But legendary investors like Warren Buffett have some pretty harsh words for it. While I didn’t stop buying gold because of what Buffett said, his reasoning does make a lot of sense—and actually lines up with my own journey as an investor.
Gold: An Asset That Doesn’t Produce Income
Buffett often points out how odd gold is. We dig it out of the ground, melt it down, bury it again in vaults—and then pay people to guard it. It doesn’t generate cash flow, dividends, or interest. It’s just… gold.
And he’s right. For years, I bought silver and gold coins—like those beautiful ones from the Royal Canadian Mint—believing they’d protect me from inflation. After all, with central banks printing trillions, the idea of holding something that can’t be “printed” made a lot of sense.
But something changed.
What Made Me Shift My Strategy
Over time, I realized that while gold can preserve wealth, it doesn’t really grow it. And since I’m still young and building my financial base, what I needed was a return on investment. So I started asking: Where can I put my money to work more effectively—while taking smart risks?
That’s when I started diving into mining stocks—especially junior mining companies that are still in the exploration or early development stages.
Why Mining Stocks Over Physical Gold
When you invest in mining stocks, you’re betting on the potential of companies that produce—or will produce—gold and other metals. That’s where the real leverage is: while gold might go up 20–30%, these stocks can go up by multiples.
For example, imagine a gold deposit that isn’t profitable at $3,000/oz. But at $3,500/oz? Suddenly, it becomes a cash machine. That kind of shift can send shares skyrocketing—something physical gold just won’t do.
Plus, storing physical gold or silver comes with a whole set of challenges: security, storage space, and let’s be honest, a little bit of paranoia. It’s not a scalable way to grow wealth.
What About Tech?
Another space I’ve always kept an eye on is tech. While I’m not actively investing in it at the moment, historically, tech has delivered some of the best returns. Whenever the economy is doing well, capital rushes into innovation. And FOMO—fear of missing out—tends to accelerate that trend.
To me, investing in tech is about looking ahead and trying not to miss the next wave of transformation. And believe it or not, there’s always a new wave forming.
So Is Gold a Bad Investment?
Not at all. Gold is money. It doesn’t need to prove anything. Across time, cultures, and economic systems, gold has held its value. One classic example: one ounce of gold has always been enough to buy a high-quality suit—for decades, maybe centuries.
That’s why I still hold on to my silver coins and a small amount of gold. But today, I see them more as insurance than an investment.
What This Journey Taught Me
• Gold is protection—not multiplication.
• Silver is close to money but more industrial.
• Mining stocks are where the real leverage lies.
• Tech is where the future gets built.
Most importantly, real investing requires strategy—not emotion. The people selling you gold today are making money off your belief. You’ll only profit if the thesis plays out. So always ask yourself: “Who’s really winning from this transaction?”
About Fabi Lara
Fabi Lara is a prominent investor, board member, and media entrepreneur in the mining investment sector. She founded “The Next Big Rush,” a daily mining newsletter with high industry engagement, and MiningDealer.com, connecting mining executives with global projects. As a board member at Rush Rare Metals Corp., Fabi contributes her resource investment expertise. Her media channel has attracted over 33,000 followers, reflecting her talent for simplifying complex investment strategies for a broad audience. Additionally, Fabi is a published author and online influencer in the Canadian Venture market space. Connect with Fabi on LinkedIn or subscribe to her newsletter, The Next Big Rush.
