Gold is trading Wednesday at a record high near $1,270 an ounce, as investors continued to flock to the safety of the precious metal. How should investors play the commodity? Frank Lesh, senior sales and market analyst at FuturePath Trading, and Will Rhind, strategic director at ETF Securities, shared their best gold plays.
“Gold right now trades as a currency…so we’re not really looking at supply-demand fundamentals in gold,” Lesh told CNBC. “It’s about demand as an investment—and that investment demand is expected to remain strong."
Lesh said he expects gold prices to advance further this year and has upside targets of $1,308 and $1,366 an ounce.
In the meantime, Rhind said there is a continuous demand for gold through ETFs such as SGOL.
“This is compounded at a time of year when we expect traditional demand from the Indian wedding season colliding with the strong demand from the market,” Rhind noted.
“Investment demand for anything depends on the attractiveness of the asset class—and right now, gold is something very attractive for investors to invest, in as the economic environment is uncertain,” he said.
Scorecard—What They Said:
- Lesh's Previous Appearance on CNBC (Aug. 10, 2010)
- Rhind's Previous Appearance on CNBC (May 7, 2010)
______________________________
More Views on Gold:
- A Precious Metal Poised to do Better than Gold?
- Gold Will Be in Strong Demand Until 2011: Strategist
- Where to Invest Now—Stocks, Gold or Treasurys?
______________________________
CNBC Slideshows:
______________________________
CNBC Data Pages:
______________________________
______________________________
Top Gold Miners:
Newmont Mining
AngloGold Ashanti
Barrick Gold
Gold Fields
Freeport McMoRan Copper & Gold
______________________________
Disclosures:
No immediate information was available for Lesh or Rhind.
______________________________
