This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
Top-rated market timer Mark Leibovit says, "Gold has been our top pick for the last two years and we are staying with it." In his VR Survey he looks at PowerShares DB Gold Double Long (NYSE: DGP).
The advisor explains, "We set a new low of 680.30 on October 24, the lowest low since the 1020 record high from March 17, 2008 and down from the October 10 recovery high of 933.65.
"Though unfulfilled technical measurements still exist as low as 620 in Gold, it appears a short-term bottom is now in place. Support is the low at 680.
"We broke through resistance of 830-850 on December 16. Strength in the US Dollar Index had put the brakes on the gold rally, but we've now seen that gold and the dollar can rally together. It is possible gold is anticipating a top in the dollar, which is inevitable.
"Indeed, you could come in some morning and find gold up $500 an ounce and blow the lid off all the bearish sentiment and doubters. Gold will never go to zero and is the ultimate hedge.
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