Professor Buffett's Anti-Gold Lesson

It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head. -- Warren Buffett

To say gold's recent run-up has caught people's attention would be the understatement of the year. With the yellow metal rallying beyond $1,200 an ounce and continuing to break records each day, its success has driven masses of not just gold bugs, but retail investors, institutions and governments both domestic and international to add the yellow metal to their portfolios.

The case for investing in gold has only been strengthened by the bold investments of hedge fund managers like John Paulson and strong market commentary from some of the most prominent observers like Jim Rogers.

Here in the Berkshire Hills in Massachusetts, the scenario is no different. The rally has caught my attention and, in my articles and videos for TheStreet.com and RealMoney, I have shared my optimistic outlook and insight concerning the many gold ETFs funds. These instruments are designed to provide investors with exposure to both the firms that mine the metal, and the shining bullion itself. In my ETF Action portfolio, I cover all gold bases, owning the Market Vectors Junior Gold Miners(GDXJ) ETF to play miners and the iShares Comex Gold Trust(IAU) to play the physical commodity.

While many are jumping on the gold-lined bandwagon, one player has remained out of the picture. Warren Buffett, a man known for choosing "sure things" has completely shied away from touching gold's run up. In fact, even precious metal miners fail to make an appearance among his holdings.