Young wrote this about the caretaker of the ranch he bought in 1970. The song compares a young man's life to an old man's and shows that the old man was once like this young man. The caretaker of the that cattle ranch? His name was Louis Avila. The ranch was the Broken Arrow Ranch, purchased for $350,000 in 1970 (just think about those real estate prices compared to now!). In the film Heart of Gold, Young introduces the song as follows: "About that time when I wrote ("Heart of Gold"), and I was touring, I had also—just, you know, being a rich hippie for the first time—I had purchased a ranch, and I still live there today. And there was a couple living on it that were the caretakers, an old gentleman named Louis Avila and his wife Clara. And there was this old blue Jeep there, and Louis took me for a ride in this blue Jeep. He gets me up there on the top side of the place, and there's this lake up there that fed all the pastures, and he says, "Well, tell me, how does a young man like yourself have enough money to buy a place like this?" And I said, "Well, just lucky, Louis, just real lucky." And he said, "Well, that's the darnedest thing I ever heard." And I wrote this song for him." James Taylor is credited with playing "guitar-banjo" on this song. Taylor, who along with Linda Ronstadt who contributed vocals, saw the banjo and started playing it. The instrument belonged to Young; it was a called a "guitar-banjo" because it was a banjo tuned like a guitar. There was some conflict over a hi-hat when Young recorded this song. When drummer Kenny Buttrey played it, Young told him not only to refrain from the hi-hat, but to only play with his left hand, which Buttrey thought was ridiculous. The drummer complied, however, literally sitting on his right hand to resist temptation. Buttrey later quipped: "He hires some of the best musicians in the world and has them play as stupid as they possibly can."