This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

After the Gold Rush, There Might Be More Upside

Gold has proved itself to be the ultimate contrarian bet against the market over the past three years. So is the gold rush over, or is there still time for individual investors to profit from this trend?

It depends: If you think the economy is reviving and the bull market has returned, you may not think you have much need for gold. However, the verdict is still out on a recovery -- and if we get one, it doesn't automatically mean a return of the bull.

If you believe the economy and the markets are still in for tough sledding, many investors might consider adding some gold to their portfolio. While gold's enormous rally may signal the easy money to be had is gone, some savvy professionals think the gold rally has plenty of life.

"I think we're in the early stages of a bull market for gold," said First Eagle Funds co-president Jean-Marie Eveillard in a recent 10 Questions interview . Several other high-profile pundits cite many reasons for a long run for gold: the weak outlook for major currencies, signs of a slow-growth global economy and the fact that we're coming off two decades of sliding gold prices.

Indeed, gold-oriented mutual funds have returned a cumulative 24.88% on average during the past three years -- far and away the best fund category, according to Lipper, a Reuters company.

Whether you are a bull, a bear or ambivalent, the fact is a small gold stake is a smart hedge in this tricky market. Gold funds have a very low correlation with the broader market -- when the S&P 500 rallies, gold falters, and vice versa. Finding assets that don't always move in tandem is a vital component of a diversified portfolio.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GFI $4.26 -2.50%
NEM $22.09 -0.63%
TSLA $191.39 3.50%
YHOO $44.87 -0.51%
AAPL $125.84 2.10%

Markets

DOW 17,902.17 -74.14 -0.41%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs