Goldman's Golden Gold Forecast Should Benefit These ETFs

Gold and its seemingly never-ending run to new heights got another boost on Monday with Goldman Sachs GS saying the yellow metal could be trading as high as $1,650 an ounce in a year. Goldman added that gold could see $1,400 an ounce in three months and $1,525 an ounce in six months and recommended buying Comex December 2011 gold futures and January 2011 Nymex platinum. For those that opt not to play the futures market, the platinum play is the ETFS Physical Platinum Shares PPLT. Backed by physical platinum, PPLT and its cousin, the ETFS Physical Palladium Shares PALL have become trendy picks to play a rebound in global auto demand. As for gold, if you're looking beyond the usual suspects like the SPDR Gold Shares GLD and the iShares COMEX Gold Trust IAU, the ProShares Ultra Gold ETF UGL is a fine way to leverage your returns on gold's ascent. For whatever reason, the PowerShares DB Gold ETF DGL rarely makes it into the gold ETF conversation, but don't ignore this fund. DGL tracks a rules-based index composed of futures contracts on gold and is intended to reflect the performance of gold. It goes without saying gold miners benefit from high gold prices, so be sure to be involved with either the Market Vectors Gold Miners ETF GDX or the Market Vectors Junior Gold Miners ETF GDXJ. Silver is the derivative play of choice, though it wasn't mentioned in the Goldman report. The Market Vectors Silver Miners ETF SIL is the way to go on that front.