Here, four advisors, with diverse strategies, all see a place for gold within their portfolios. Richard Rhodes is a technical trader. Jim Stack is a long-term investor, focused on technical and fundamental analysis. Vivian Lewis looks worldwide, for the best global opportunities.And Dr. Mark Skousenincorporates economics and politics into his financial assessment. Here are some top gold plays.
"ASA (ASA NYSE) remains our play on a bull market in gold,"
says Richard Rhodes, editor of The Rhodes Report. "The uptrend in continues, albeit in a ‘two steps forward, one
step back fashion’ "Meanwhile, the bullish breakout above major resistance at
the $42.50-$43.00 level was considered material in nature and quite
constructive. Further, we believe this has set the stage for prices to move
sharply higher towards our target zone somewhere near trendline resistance at
$47-$50. Our technical indicators are now very bullish. However prices must
remain above the $42 level. Sit tight."
"Is gold measuring higher inflation ahead, or fear of the dollar’s demise?" asks Jim
Stack, editor of InvesTech Market Analyst. "We think it’s the latter. The dollar is in a
bear market – giving back all the gains of the late 1990s. Nonetheless, it has
certainly had a positive affect on gold prices and our holding in Newmont
Mining (NEM
NYSE), which is up 45% year-to-date. The price of gold is amazingly
close to breaking out to 15-year highs. Meanwhile, we also recommend two gold
mutual funds: American Century Global Gold Fund (BGEIX) and Fidelity Select Gold (FSAGX)."
"Supply and demand move markets," says Vivian Lewis in Global Investing,
in an overview of the gold stocks held in her model portfolio.
"Gold stocks are rocketing, starting with
Buenaventura (BVN NYSE), up despite its hedging. Our tip of ASA
(ASA NYSE) still stands, with Goldfields (GFI NYSE) and Johnson Matthey (JMPLY Pink
Sheets), both around our entry point; and Sons of Gwalia (SOGAY pink sheets), below it; and our wild Canadians,
Orezone (CA:ORZ Toronto) and Radius (CA:RDU Toronto).
"We are increasing our natural resource and gold position from 10%
to 15% as a result of gathering inflation worldwide," says Mark Skousen,
editor of Forecasts & Strategies. "There are several ways
to invest in commodity inflation. Oppenheimer Real Asset Fund (QRANX) is one way. Among my best choices for gold
investors are American Century Global Gold (BGEIX) and Tocqueville Gold Fund (TGLDX). Our favorite blue chip gold stock is Newmont
Mining (NEM NYSE). It
is one of the largest gold producers in North America, and is relatively
unhedged."
