Today gold closed at $704.60 oz., a level not seen since mid-May.
In addition light sweet crude closed at $76.30 per barrel, a level not seen in over a month.
Precious metals and energy are in high demand in the developing world.
US supplies of crude oil and gasoline are significantly lower than normal.
People are also buying commodities in anticipation of a rate cut by the Federal Reserve this month which traders are predicting will create more growth and drive up demand for these commodities and overall inflation.
Overall the story is very strong for both precious metals and energy in a diversified portfolio.
In the energy sector, some of my favorite names are: ConocoPhillips (COP), Devon Energy (DVN), and Sasol Ltd. (SSL).
In precious metals, two of my favorite names are: Freeport McMoran Copper & Gold (FCX) and Yamana Gold (AUY).
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