KCI's Triple Play

10/03/2003 12:00 am EST


Readers of the Digest are well aware of the high regard we have for the editorial team at KCI Communications;  they rank among the very best in the business. Here, Neil George offers a favorite silver play, Ivan Martchev selects a top gold fund, and Elliott Gue offers a trio of gold stocks. Here are their favorite metal plays. (For more information on each advisor, simply click on their photos.)

Martchev, Ivan "Among mutual funds, here’s a gem that stands out - American Century Global Gold Fund (BGEIX)," says Ivan Martchev.  " We’ve made a lot of money with this fund, which is more leveraged to smaller metals producers. The fund is up 40%, 33%, and 13% during the past one-, three-, and five-year periods, respectively. Buying the violent gold corrections has been the best strategy. But since you have no guarantee how soon a correction will come and how shallow it will be, you can start slowly building a position now in BGEIX and buy more on any dips."

George, Neil "Some stocks that have been on a watch list are now buys for our growth portfolio; at the top of the list is Apex Silver Mines (APX NYSE)," says Neil George. " I’m no gold bug, but I do understand reasons to buy resource companies now and again. With financial markets from the general stock market to T-bonds and even the dollar in unnerving flux, some of the metals markets have fared well. It’s not a straight line to riches but with Apex you have a collection of property reserves that are used as a leverage proxy for silver and other metals. Buy up to 18."

Gue, Elliott"We have been bullish on gold for some time, and the conviction here remains that the 20-year bear market in gold is over, and a secular new bull market has commenced," says Elliott Gue. " Currently, gold is trading at a seven-year high. The upside of this new bull market will eventually surprise the markets. Our portfolio has a good exposure to unhedged gold and silver stocks – Newmont Mining (NEM NYSE), Harmony Gold (HMY NYSE), and Buenaventura (BVN NYSE). We’re prepared to let these holdings run for a long time."

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