The HUI gold BUGS index bottomed out last fall and has made a remarkable rally this spring that has more than doubled its value.  While the time to buy was last fall when there was blood in the streets there still may be time to buy the “dogs of the HUI”.  

The chart below shows the latest price of each member of the HUI as well as their 52 week high and low.  CDE is currently selling at only 44% of its 52 week high.  HL is currently selling at only 37% of its 52 week high.  Several of the HUI stocks are currently selling near their 52 week high.  Of course my all time favorites of AEM and GG are both selling at 76% of their 52 week highs.  While you can always buy all 15 stocks I recommend the four I have listed.  My favorite two are selling at a discount while the first two are greatly discounted and have a lot of catching up. 

Of course there is no substitute for silver and gold held in your own “central bank”.  Take possession of your silver and gold outside the banking system if you are in a position to do so.  However, if your funds are captive inside your 401K or retirement system then consider the four stocks listed above.  These will allow you to take advantage of the silver and gold bull market without watching it pass you by.
 
          Remember to never invest more than 2% of your portfolio in a single mining stock.  In all fairness I am compelled to disclose that I own several of the stocks listed above.  I am also compelled to advise that I am by no means considered an investment advisor.  As my daughter so artfully points out from time to time, “If you are such as expert in money, why don’t we have more of it?”
 
 
Larry LaBorde,
Silver Trading Company
 
Larry lives in the occupied South with his wife Puddy and sells precious metals at the Silver Trading Company.  Larry can be contacted at llabord@aol.com.  You can view his web site at www.silvertrading.net.
 
To order advance copies of Larry’s new book, “Investing Without a Net” just go to his website at www.silvertrading.net and scroll down to the middle of the home page and click on the link.

-- Posted Monday, 1 June 2009 | Digg This Article