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The Right Gold Trade

Friday, 22 Feb 2008 | 7:44 PM ET

With gold making gains of 13% this year alone, how should to trade?

Fast Money Final Trade
The Fast Money guys share their final trades of the day.

Buy the commodity not the miners, counsels Guy Adami on CNBC’s Closing Bell. Get long the streetTRACKS Gold Trust (GLD).

Why not mining stocks?

The miners haven’t been particularly fantastic, in my opinion. Just because gold prices go higher doesn’t mean these companies will necessarily profit, Adami says. Who’s to say the company is run well? When you buy a stock you're buying the management.

I’d stay away from Newmont (NEM), Kinross (KGC) and Barrick (ABX), he concludes.

  Price   Change %Change
YNP
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K
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NEM
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Trader disclosure: On Feb. 22, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (DIS), (YHOO); Seymour Owns (AAPL), (INTC), (MER), (S), (TSO); Seygem Asset Management Owns (GFA); Finerman Owns (GS); Finerman's Firm And Finerman Own (KALU); Finerman's Firm Owns (MPG), (MSFT), (TSO), (VLO), (WMT), (YHOO), (AAPL), (GE), (JCP), (KSS); Finerman's Firm Is Short (IYR), (IWM), (IJR), (MDY), (SPY), (GFI), (LEH); Finerman's Firm And Finerman Own (HD) And (HD) Puts; Finerman's Firm And Finerman Own (CROX) And (CROX) Options; NBC Universal Is The Parent Company Of CNBC

  Price   Change %Change
ABX
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NEM
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