How to Invest in Rising Commodities: Stock Picker
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.”
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:
- Cramer: Getting Gold on the Cheap?
- 'Fast Money' Traders: Gold to Lose Its Shine in 2011
- Time to Buy Both US Dollar and Gold, Says Chartist
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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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