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Gold is money. But like all currencies it fluctuates in value based on supply, demand, and perceived value.
In an environment where yields are low, the stock market seems overvalued, and governments world wide are printing lots of money (and/or incurring debts they can't pay), then the value of gold will increase.
Buffett buying a gold miner is a bit surprising. He's historically loved to hate on gold the commodity, preferring cash. But alas, the NIRP environment likely makes cash that much less attractive. And he's a value investor, and this doesn't look like a value market. So buying a gold miner allows him the fig leaf of "not buying an asset with no inherent income potential" but rather the business that produces more gold in a market that's like to demand more gold.
Makes sense.
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