After a big runup and a scary but small drop off its highs, gold is just above January’s highs and right at the all-important 50-day moving average (moving averages are hugely important to big badass trend traders). Commodities should continue to break out, the dollar should remain weak—solid argument for higher prices, but then again, it’s come sooooo far already.
So, the question is how do you play it? Here’s my safe way to play gold: Permanent Portfolio (PRPFX)
Look at that stunning 7-year chart! It’s the top-rated hybrid fund over pretty much every time frame, which I’ve mentioned I’ve been invested in for a while now. Their asset mix—20% gold, 15% global real estate, 10% Swiss Francs, 5% silver and lots of other little stuff—and chart are so beautiful, I’ve allocated 15% of my net worth to it and within a few months, I’m up a solid 4%. Plenty of exposure to gold, just without all the risk of being so concentrated in it.
Posted in Patterns To Buy