Top picks 2012: SPDR Gold Trust

Gold has chalked up gains every year over the past decade -- a claim few other investments can make.

By TheStockAdvisors Dec 29, 2011 9:37AM
 Image: Small Stack of gold ingots (© Anthony Bradshaw/Photographer)
This post is one in a series in which over 50 newsletter advisors share their Top Picks for 2012

By Mary Anne & Pamela Aden, The Aden Forecast

Our top pick for 2012 is gold. It has been the best investment year after year, and it's still the best performer.

Gold has steadily risen 645% since 2001. During this past decade, the Dow Industrials has only gained 13%. So why fight this mega trend? Instead, go with it.

There are many reasons why gold has been strong and why it'll continue to rise. The most important is demand.

With the Western world in serious financial trouble, investors are keen to hold gold. The same is true of the world's central banks. 

As millions of Chinese and Indians become more affluent, they’re also buying gold. Growth in these countries remains strong, which means this demand will likely continue. Meanwhile, in the troubled economies of the Western world, debt keeps growing and it's being fought with even more debt. 

This explains why the markets have been so volatile and again, this will likely continue.

As this becomes more obvious to Western investors, they too will likely turn to gold, realizing that it's the ultimate safe haven. It has been for thousands of years, and it still is.

The SPDR Gold Trust (GLD), an exchange-traded fund (ETF) listed on the NYSE, moves with the price of gold. This isn’t quite as safe as owning the real thing (in our view, physical gold is still the best option) but at least you'll profit as gold moves higher.

Be prepared, however -- gold can be volatile. Nevertheless, it's chalked up gains every year over the past decade and there are few investments that can make that claim.

Steven Halpern's TheStockAdvisors.com offers a free daily review of the favorite stock ideas of the nation's top financial newsletter advisors.




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