Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Pamela Anne Aden, turns to gold for both her favorites for 2007 -- selecting the exchange-traded fund streetTracks Gold Trust (NYSE: GLD) as her conservative investment and Market Vectors Gold Miners Trust (ASE: GDX), also an ETF, as her top speculation.

In The Aden Forecast, the resource sector advisor notes, "There are several reasons why the metals and commodities markets are likely headed higher in the upcoming years. Aside from the ongoing demand out of China and other emerging nations, gross financial imbalances are taking their toll too.

"In recent years, the U.S. has gone heavily into debt. At the same time, China has built up the largest cash reserves in the world. The end result is the largest U.S. budget and trade deficits in history, and this has caused the U.S. dollar to fall over the past five years.

"Since gold and the dollar generally move in opposite directions, these imbalances have also been an important factor driving gold higher. This major financial shift is unlikely to be resolved soon. That means gold and gold shares are poised to rise further in 2007.

"One way to take advantage of these trends is buying the gold ETF, streetTracks Gold, which tracks the price of gold bullion and is a conservative way to invest in this market. The ETF for gold shares -- Market Vectors Gold Miners -- which tracks individual gold mining companies, is a more speculative way to play the sector."

Top Picks 2007: Golden gains for Pamela Aden originally appeared on BloggingStocks on Mon, 25 Dec 2006 14:30:00 EST. Please see our terms for use of feeds.