"Getting invested in precious metal for the long term is our end game," says Daniel Frishberg, host of BizRadio and editor of The MoneyMan.com Gold & Oil. Here's a look at two ETFs.
"It looks as if prices could go higher short term, especially if US dollar weakness continues. The risk of owning gold at today's price level is that net commercial short positions continue to increase.
"Attempts by producers and speculators to bid up prices are matched by increases in commercial short positions. Gold prices are being controlled not by physical buyers and sellers, but by futures traders.
"There is little doubt that higher, perhaps much higher, gold and silver prices will eventually happen. It is just a matter of timing.
"If the big Commercials can force prices lower to cover their short positions, this will be the best time to buy.
"If they are unable to drive prices lower and are forced to cover their short positions at higher prices, gold, silver, and mining shares could set new record highs very quickly.
"Being mostly in cash is betting on history repeating itself one more time, i.e., the big Commercial shorts ability to force gold and silver prices lower.
"Since we don't know if or when this will happen, increasing our holdings in mining shares will allow participation in the up-side if precious metals climb higher on $US weakness, yet still leave plenty of cash to buy shares at bargain prices.
"For now, we are recommending positions in Market Vectors ETF Trust Gold Miners (NYSE: GDX). And for silver exposure, we are recommending positions in Silver Wheaton (NYSE: SLW)."
Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Allstate Earnings Preview: Looking for a Turnaround
Disney Starts Off the New Fiscal Year with Solid Results
Before the Bell: Futures Higher on Greece Rescue Hopes
