iShares S&P/TSX Global Gold

XGD-T

Gold is a fear-based trade. Big issue is currency. If US dollar isn't seen as the stalwart of the world, that's a good case for gold going up. Gold producers benefit from this. You could also buy GLD. He owns SLV. He'll be wrong if confidence is restored to the US, because then gold won't be a necessity to investors' safety mindset.

A asset of global gold stocks on which they write calls to generate enhanced yields. If you are bulling on gold you do not want a covered call overlay. HEP-T vs. XGD-T gives you an idea of what to expect.

He has never been a gold bug, but they keep 3-5% exposure to it. He prefers to pick individual producers with good production growth profiles and strong balance sheets. The recent run to $1450 per ounce has been a good push and he is not sure if that is sustainable. He likes Newmont.

XGD-T vs HEP-T vs GLD-N. XGD-T is global, primarily Canadian gold stocks. HEP-T is based on futures contracts, a more pure play. GLD-N holds physical gold. Not bullish on gold, but will trade it seasonally.

The risk/reward on gold producers is pretty good. You can buy the whole basket. There's resistance just below $13. This is good for the next three months and maybe hold it after that.