This Day On The Street
Continue to site
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

Quick Take: Buy a Little Gold Every Month

NEW YORK ( TheStreet) -- Gold prices ripped above $1,300 per ounce, but as John Mauldin, president of Millennium Wave Investments, tells TheStreet's Joe Deaux, the daily price fluctuations aren't as important as the long-term moves.

Mauldin called the yellow metal a hedge against central bankers, although he doesn't see them doing anything unreasonable anytime soon, with the Federal Reserve on the brink of tapering its stimulus program.

So rather than buying large positions in the precious metal now, he suggests doing what he does: Accumulate small positions in gold over a long period of time.

He said that investors could make monthly investments in physical gold or ETFs and should not fixate on the price they're paying today, but rather, what it could be worth down the road.

Although the data don't suggest a recession is in the cards in the immediate future, Mauldin said that the economy is not recession proof and we'll eventually have another one.

Historically, we rarely go 10 years without some sort of recession, although he acknowledged he didn't see one in the next two years. However, if one did emerge, what would the Fed do? With interest rates already so low, the only thing left would be another round of quantitative easing, which would positively affect the price of gold.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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
Only $9.95
14-Days Free
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
SYM TRADE IT LAST %CHG
GLD $114.02 0.00%
AAPL $131.78 0.00%
FB $80.14 0.00%
GOOG $539.78 0.00%
TSLA $251.45 0.00%

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs