Buying Gold at the Top

The market correction and the European debt crisis have renewed investors’ interest in gold, pushing the commodity’s price levels to new highs.

Is there a way to safely buy gold at these levels without exposing your portfolio to the risk of a sudden crash in gold prices?  That’s the question asked by the WSJ’s Brett Arends in the article Playing Gold Without Getting Killed.

Arends suggests that instead of buying the SPDR Gold Shares (GLD) ETF, investors should consider buying call options on gold.  Options provide upside exposure while limiting downside losses.

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