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How to Invest in Rising Commodities: Stock Picker

Tuesday, 4 Jan 2011 | 11:34 AM ET

With commodities such as gold, silver and palladium hitting record highs in the last few years, investors should continue to be focused in the space, said Dan Denbow, co-portfolio manager of USAA Precious Metals & Minerals Fund.

“The ETFs are playing a part in all the metals, as it gives people the ability to speculate on rising prices. But industrial demand is a big part as well,” Denbow explained to CNBC.

“The growth in China and emerging markets...[have] played a big part in the recovery and the return in the auto demand—especially in the emerging markets—has played a big part in the return of in palladium and platinum recoveries as well.”

Metals: Now & Then
Most metals and minerals have had impressive runs in the last decade, with Dan Denbow, USAA Precious Metals & Minerals Fund.

Denbow said the factors that drove up prices of precious metals such as budget deficits and currency devaluations are likely to continue.

As a result, Denbow said he likes investing both in gold and gold mining stocks.

Denbow's Picks:

GoldCorp

Barrick Gold

Newmont Mining

Northgate Minerals

OceanaGold

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Scorecard—What He Said:

  • Denbow's Previous Appearance on CNBC (July 2, 2010)

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More Gold Market Analysis:

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CNBC Slideshows:

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CNBC Data Pages:

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Disclosures:

No immediate information was available for Denbow or his firm.

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Disclaimer

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