Thursday, January 31, 2008

Loonie weakness + gold strength = IGT

If the recession risk in the U.S. heightens, despite the recent Fed easing, investors can continue to build gold weightings in their portfolio. The implication of a weaker Canadian dollar also lends itself to trading the iShares COMEX Gold Trust (TSX:IGT). The gold trust has been outperforming the iShares S&P/TSX Global Gold Fund (TSX:XGD), and represents a more profitable option for Canadian investors as the loonie weakens in a bullish bullion environment.
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