Analysts from Thomas Weisel Partners Say How to Play Gold Now

June 29, 2009

As part of our special focus on Gold and Precious Metals, we spoke with analysts Heather Douglas and Andrew Mikitchook of Thomas Weisel Partners about the space. Their outlook for this space, for the near term  at least, was actually quite positive:

 Ms. Douglas: Our 12-month expectations are positive for gold. We are aware that the early summer months are usually a more sideways period for the commodity, and we view pullbacks as opportunities to re-enter. We’ve identified some interesting developers who, even if the gold price doesn’t move, have the opportunity of showing price appreciation as they advance their projects, have exploration success, and bring projects into production. So that’s our June 2009 view.

TWST: It sounds more positive than anything else.

Ms. Douglas: Still positive. For the generalists, I do recommend exposure to gold first and then extra work to look at the companies, to be familiar with the specific risks with each of the companies.

TWST: When you say gold first, how do you recommend they play it?

Ms. Douglas: It depends on the investor. The GLD ETF is obviously one way, but there are other ways for them to get only the gold exposure diversification they are seeking without the additional operating and country development risks associated with each of the companies.

For the complete Gold and Precious Metals issue, including a full interview with both Ms. Doulgas as well Mr. Mikitchook in addition to interviews CEOs of topic companies in the space, click here.