"Gold's primary role is defensive, more as a hedge against stock-market fluctuations downward, but at this point in time, we also feel it has an offensive role in the investor's portfolio, because of its inflation characteristics and as a currency substitute," he said.
Short of developing the talents of King Midas, how does an investor get the golden touch?
"We think the best way of doing it is through the mining stocks," he said. "This is because of the operating leverage; you don't have to put as much capital into that sector if you use the mining stocks."
Johnson's Top Holdings:
The top holdings in the portfolio Johnson manages are Agnico-Eagle Mines, Impala Platinum, Newcrest Mining, Goldcorp, IAMGOLD, Eldorado Gold, Yamana Gold, Newmont Mining, Lihir Gold, and Randgold Resources.