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How to Play Gold & Base Metals: Strategist

Gold prices rose the most in four weeks on speculation that the rally in the dollar might be about to stall. Is it a good time to start looking into the precious metal? Ben Fulton, managing director at Invesco PowerShares, shared his insights.

“Gold has been a classic hedge for portfolios and when you have any instability, you always see people who are always looking for gold-type products coming out,” Fulton told CNBC.

Fulton said ETFs are a good way for investors to get exposure to different types of gold. He also added that the biggest ETF flows have been into base metals.

“We’ve seen a lot of growth and the bigger performers have been the base metals—things like copper, zinc and aluminum, which are all the base metal products, were up more than gold last year,” he said.

Fulton said the base metals and gold could be played as a long and short-term play.

“For the long-term, when you see the emerging markets reviving and driving us out of the recession, consumers that look for long-term moves are looking at the base metals, while people who have fear or are looking for opportunity are trading gold,” he said.

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More Market Intelligence:

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Top Gold ETFs:

SPDR Gold Shares

iShares Comex Gold Trust

Top Gold Mining Firms:

Newmont Mining

Barrick Gold

Freeport McMoRan Copper & Gold

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Disclosures:

No immediate information was available for Fulton or his firm.

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Disclaimer