What quality of gold is Warren Buffett referring to in his quotation?

Warren Buffett often discusses the nature of gold in terms of its intrinsic value, particularly emphasizing that it does not produce cash flow or generate any economic output like a productive asset would. Instead, he points to the significant costs associated with storing gold safely and securely. This focus on storage costs highlights the practical considerations investors must take into account when investing in gold as an asset.

In contrast, others may view gold through the lens of rarity, historical significance, or intrinsic value. Rarity contributes to gold's appeal as a luxury item and a hedge against inflation, while its historical significance reflects its longstanding role as a form of currency and a store of value throughout civilization. However, Buffett's perspective is rooted in the tangible economic implications of holding gold, particularly the financial burden of maintaining physical possession of it, which makes storage costs the focal point of his quotation.