To Own Gold Or Silver? That Is The Question. May I Suggest...Both?

As most of us know by now, a third round of quantitative easing from the Federal Reserve is likely in the cards. A great way to position your portfolio ahead of central bank action is with gold and silver, either in physical form as I have previously recommended or in the form of an ETF that tracks the price of these precious metals such as (SLV), (GLD) or (IAU). In the last month, these ETFs have gains of 13.4%, 5.52% and 5.50%, respectively. The gold and silver companies tracked by the ETFs (GDX) and (SIL) have outperformed the aforementioned ETFs in the last month with returns of 16.75% and 23.76%, respectively. For those investors seeking possible returns in the precious metals sector that outperforms the returns from owning physical metals or the GDX and the SIL, I have recommended picking up an individual gold mining company or one of the silver companies. For those investors who want to play the individual companies, I am now suggesting that it is best to own both a company that primarily is gold oriented and another that is primarily silver oriented. In this article, I wish to highlight one gold company and one silver company that I believe are good buys at current levels ahead of possible QE3 and for the long term. I think owning both of the following companies together provides a strong risk reward ratio in the years ahead:.....READ MORE

Gold, Silver And Platinum? A Precious Metal Play To Consider

I have been recommending gold and silver in physical form or through one of the ETFs that tracks the price of the metals such as (GLD), (IAU) and (SLV) for the last month. I have also been recommending investing in individual miners for each of the metals as well. While the GLD, IAU and SLV are up 5.5%, 5.5% and 13.5% respectively in the last month due to the rising price of gold and silver, one of the world's most precious metals has not been receiving as much attention from the financial media. That metal is platinum, which is rarer than gold and silver and has many applications in industrial sectors. Platinum can be found in: Automobiles and machinery; used in catalytic converters, spark plugs, and sensors Chemical processing; can serve as a general catalyst to speed reactions Electrical/electronics; found in high-temperature and non-corrosive wires and contacts Glasswork Petroleum/oil refining; serves as a catalyst for crude oil cracking Jewelry; often used as a substitute for gold Dental/Medical equipment Investment form; bullion and coins Gold is trading at a higher price than platinum recently. This is historically rare and could mean platinum is due for a rebound above gold prices. Since the mid 1990s, platinum has often cost 1.5 to 2 times as much as gold. Platinum currently trades at $1545 an ounce, whereas gold is now above $1670 an ounce. While platinum is up approximately 14.5% this month, I think the current run up may have just begun and thus....READ MORE

Its Not Too Late To Ride The Bounce In The Gold Miners; How To Play It Right Now

After struggling for nearly a year straight, the gold mining stocks are starting to shine brightly. On average, they sold off more sharply than the price of gold in the past year. Gold prices dipped nearly 30% from their highs in 2011 to their lows in May. The gold miners, in contrast, as measured by the gold miner ETF (GDX), junior miners index (GDXJ) and Direxion Daily Gold Miner Bull 3X ETF (NUGT) were off a staggering 41%, 56% and 82%, respectively. They clearly had felt the brunt of that sell-off. Gold has traded in the $1,550 to $1,640 range since about late May, and is up 4% on the year so far. Gold was off to the races Tuesday as it was up nearly 17 dollars an ounce, breaking the $1640 mark. The ETF (GLD) was up over 1%, yet the gold miners were up significantly higher. At the time of this writing, the NUGT was up 6%, while the GDX and GDXJ were up 1.7% and 3.5%, respectively. I have previously recommended picking up the gold miners at the start of this upswing that began in August and I am reiterating my buy recommendation on the gold miners once again. Since trading began in August, the GLD is up 2% while GDX, GDXJ and NUGT are up roughly 10%, 13% and 25%, respectively. This is primarily because I see gold prices…READ MORE

Food Inflation From Worldwide Drought Could Push Gold Above $1900 An Ounce By Year End

I see possible food price inflation due to rising grain prices as yet another opportunity, and a reason, to own gold. Prior to this drought, deflation concerns had driven down the price of gold and the gold miners. Now, possible European stimulus, another likely round of QE3, and most notably, food price inflation are all significant tailwinds that will support the price of gold. In fact, gold closed above its 100 day MA and is forming a bullish engulfing chart pattern. I believe support relative to food cost inflation may be seen in the trading of December gold contracts at $1602 with possible topside resistance seen at $1645 and $1670 levels. A breakout above $1670 would be a massively bullish signal, and....READ MORE