How to play the gold market

Gold hit a new record on Monday, pushing past $1,600 US, as investors flocked to the safe haven metal on concerns of Europe’s sovereign debt crisis and a political stalemate over the U.S.’s debt ceiling.

Mark Leibovit, chief market strategist and publisher of VRGoldLetter.com, tells BNN he is now revising his call for the price of gold up to $3,600—and says it may run higher.

“I know it sounds late in the cycle, but the trend is up. If you can average your entries, at least get in the door, that is the key,” he says.

Leibovit says the debt problem in the U.S. is not solvable and the can is being kicked down the road.

“Gold is telling us that, that’s why we’re in this big picture uptrend. So if we do get a temporary fix, there will be a bit of a correction and another buying opportunity.”

Leibovit recommends that investors play gold and silver through the Central Fund of Canada (CEF.A-T 21.8 -1.19 -5.18%).

“Outside of owning physical gold and silver – you don’t want to do that – Central Fund is your play.”

His other picks include:

-ETFS Gold Trust (SGOL-N 157.72 -1.82 -1.14%)

- ETFS Silver Trust (SIVR-N 38.78 -1.46 -3.63%)