Gold broke above $1080 an ounce spot this morning in conjunction with the London close. I expect this was due to a spate of panic short covering. Likely it will retreat to more reasonable levels by the end of the trading day in New York.
Still, gold has been exhibiting a pronounced tenor of upwardness lately. This is a positive sign for gold and also gold equities, many of which are up 7-8% so far this morning alone.
Warren Buffet has purchased Burlington Northern Railway. It's a good purchase. Railways move freight in a much more fuel efficient manor than trucking. This purchase, like many others that could be made now, will eventually pay off. Unfortunately, transportation will be in a slump, possibly for many years, as the economy contracts and America reverts from a service economy to one of production. Warren has the deep pockets to endure a drain of capital until inflation and an expanding economy makes this purchase pay off but the guy's in his eighties. He'll never see the day. Why buy something, the fundamentals of which, you know will get worse before it gets better?
Warren is contemptuous of gold as an investment. Too bad.