Forget Congress -- Keep Buying Gold
Forget congressional bluster about clamping down on "speculators" -- commodities prices have barely begun to climb. So says John Roque, senior vice president of Natixis Bleichroeder. He offered CNBC his sector insights -- and a top stock pick.
"The trend for the CRB [Reuters Jefferies CRB commodities index] relative for stocks looks up," said Roque. "And the trend for gold relative to the S&P also looks up."
He explained that the Dow Jones Industrial Averagae is currently "roughly 11, 12 times the price of gold." And he said historical trending indicates that gold "is going to go higher still."
"If the Dow goes ro 10,000, it's not crazy that gold can go to 2,000. If the Dow goes to 9,000, gold can go to 3,000."
Recommendation:
"On a relative or absolute basis, we want to own gold and some of the gold stocks."
The name Roque calls most "attractive": GoldCorp..
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CNBC Investor Intelligence:
- More gold miners: Barrick Gold; AngloGold Ashanti ; Newmont Mining.
- You can play gold through an ETF: SPDR Gold Shares
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Disclosures:
Disclosure information was not immediately available for Roque or for his company.
