Our latest recommendation is a fund that holds precious metals; 95% of its holdings consist of either gold or silver bullion stored in the highest security treasury vaults at a Canadian government chartered bank, notes Jack Adamo, editor of Insiders Plus.

Central Fund of Canada (CEF) has long been recognized as the best-managed of its kind.

The assets are held separately from others and no one has any claim on them except the shareholders. 59.1% of the fund's value is in gold, 40.2% is in silver, and 0.7% is in cash and other assets.

Another reason we're choosing the Central Fund is that it is selling at a 4.7% discount to net asset value. Over the last five years it has sold at an average premium to NAV of 5.3%.

Hence, if the appetite for precious metals picks up again, on top of whatever the actual bullion prices appreciate, we should get an extra 10% bump (the spread between -4.7% and +5.3%).

I cannot swear that gold and silver have bottomed. In fact, if we slide into recession, they will both probably slide as well.

However, from both fundamental and technical perspectives, it looks to me like the long-term trend for gold and silver has stabilized and will work its way up from here, cyclical factors aside.

In addition, gold holdings provide inflation protection for our portfolio of preferred stocks, which tend to lose value in inflationary times.

The shares of Central Fund are very stable lately and liquidity is good in the shares, so we can keep a close buy limit on them.

Nonetheless, I'd buy them with a limit order rather than a market order in case the market heats up. We are taking an initial position in our portfolio; should we get a pullback this summer, we will add to our position.

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