With gold making gains of 13% this year alone, how should to trade?
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.
Got something to say? Send us an e-mail at email@example.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to firstname.lastname@example.org.
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