Wednesday February 15, 2012
by Curtis Hesler, editor Professional Timing ServiceIn the near term, it is not surprising to see gold encounter some selling at the $1,750 - $1,800 level, and a brief spate of profit taking is in order.
Indeed, I would not be disturbed to see a brief dip to $1,650. Keep in mind that a $100-$150 move in gold is inconsequential, and weakness offers you a chance to accumulate if you feel underinvested.
If I were to concentrate on one gold issue and violate my mantra about keeping portfolios balanced and diversified, it would be
Central Gold Trust (
GTU).
This is a pure gold play - a closed-end mutual fund holding bars of gold bullion. There will be no leverage in profitability as you will find with the miners; but if gold is what you are targeting, this is a pure gold bullion investment.
Buy GTU at $65.00 or better. Positions accumulated under $65.00 should prove rewarding.
Remember to hold your commodity-advantaged stocks, even during a selloff. There are too many exogenous, bullish factors at work for you to be messing with your investment positions by trying to trade them short term.
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