Howard Marks, co-founder of Oak Tree Capital, recently launched a fierce attack on gold. He believes that the "store of value myth" of gold is completely self-deceptive — it neither generates cash flow nor has any logical basis for pricing.

How to understand this? Compare it with stocks and bonds. These assets can generate interest, dividends, or cash returns, which you can use as a basis for valuation. What about gold? Nothing at all. Its price is purely built on the collective illusion that "everyone believes it’s valuable."

Marks used an interesting analogy — it’s like "The Emperor’s New Clothes," where the entire market is in collective blind obedience. History shows us that even the most reasonable logic cannot stand in the face of a crisis. Once something really goes wrong, gold prices will still plummet.

That said, central banks are indeed hoarding gold, and geopolitical tensions are pushing gold prices higher. By 2026, gold has even increased by 7%. But in Marks’ view, none of this changes the essence — prosperity without intrinsic value support will eventually collapse. Assets without real cash flow as an anchor are ultimately not the main players in a rigorous investment portfolio.