KITCO NEWS - Gold will likely continue to shine, especially in the second half of the year as volatility comes back into play, this according to Stifel Nicolaus portfolio manager Chad Morganlander. Speaking with Kitco News on Wednesday, he said he expects the metal's longer-term annual returns to be between four to six percent over the next 5 years. 'We are recommending an overweight in gold,' he said. The yellow metal has been under pressure on heightened rate hike expectations, trading at two-month lows. December Comex gold last traded down $5 at $1,311.50 an ounce. 'Investors should buy a pure play on the commodity (ETF) rather than individual miners,' Morganlander added. He noted that gold miners are subject to equity risk and he prefers investing in the underlying metal instead.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.