All Aboard the Rails Trade

From thestreet.com 8/4/08

Don't miss your train, it's departing.
After many attempts, Gold finally hit a record last week in London. It was a result of frenetic buying coming from everywhere. There was big buying in the U.S. and Europe, surprising even some longtime fans of Gold. You know, I have loved and recommended gold for years. This time the world brought Gold to a record that surprised some but not me.
This week, I talked on Fox's Bulls & Bears TV show about a trade that makes a ton of sense to me. With the recent high cost of fuel, the railroads have become the shipping method of choice. It has been a favorite space of Warren Buffett. He has amassed an 18% stake in Burlington Northern(BNI - Cramer's Take - Stockpickr).
One of the main reasons the rails are prospering now is because diesel fuel has risen faster than oil, gasoline and jet fuel. The national average diesel price topped out recently at $4.85 a gallon, up a whopping 67% vs. last year. It still sits at $4.68 per gallon today. .........
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