"Pullbacks in gold should be treated as buying opportunities," says resource stock expert Larry Edeson. In his Real Wealth financial newsletter, the advisors looks at some favorite gold funds.
"After reaching a new record high of $1,226 an ounce, gold abruptly pulled back more than $100 as the U.S. dollar bounced higher.
"In our view, the dollar was overdue for a bounce on a purely technical basis. Likewise, gold was overdue for a pullback.
"Make no mistake about it: The dollar remains in a long-term bear market, and conversely, gold in a long-term bull market. One of my forecasts for 2010 includes gold hitting at least $1,500 an ounce!
"So I repeat, if you’re not in the gold market, or wish to add to positions, this pullback is a great opportunity to do so. Among our gold positions, we continue to recommend SPDR Gold Trust (NYSE: GLD)
"Among mutual fund, investors should also buy DWS Gold & Precious Metals Fund (SCGDX), Tocqueville Gold Fund (TGLDX), U.S. Global Investors Gold and Precious Metals Fund (USERX) and U.S. Global Investors World Precious Minerals Fund (UNWPX)
"Look for even bigger profits down the road. We consider these funds to be core gold positions. Use the pullback to buy if you don’t own any of the above, and/or add to positions (but do not exceed a total core gold allocation of 25% of your investable funds)."
