Tom Luongo, editor of Newsmax's The Gold Stock Adviser newsletter, urges investors to buy the precious metal before stocks included in the sector.

"I would prefer the metal at this point, or … derivatives of the metal which, in that case, would be the physical trusts like Sprott Physical Gold Trust or, my favorite, the Central Fund of Canada, ticker CEF," Luongo told Newsmax TV in an exclusive interview.

"At these prices, and we don't know when the market sentiment is going to turn, but it will."

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Luongo was asked about the pretenders in the industry. He's not a big fan of a lot of the majors since their balance sheets are "very compromised."

"We put out a call to … sell Kinross Gold recently and much of that is because I don't like the way management communicates with their shareholders," he said.

"They've had to do a couple of massive write-downs on their African assets. They tend to do write-downs in the end of the year report, which comes out in February, so there's always a potential that there may have to be more.

"There's a lot of things I like about the company, but, at this point in time, if gold is going to rise, which I believe it will, and significantly, there are plenty of good gold miners out there that don't have any questions about their balance sheet, management, and things along those lines and where their assets are, their political risk."

Luongo added that the current bearishness in gold — "this current multi-week down trend" — is probably close to its bottom.

"We haven't seen a retest of [$1,295 per ounce] from before the taper announcement and, before that, we didn't see a retrace of [$1,276], so I'm seeing buyers being uncovered at slightly higher prices," he said.

Gold dropped for a third consecutive session Tuesday on concern the Federal Reserve will slow the pace of its stimulus measures, cutting demand for the metal as a store of value, Bloomberg News reported.

Fed Bank of St. Louis President James Bullard said Sept. 20 that tapering may start in October after the central bank unexpectedly refrained last week from slowing its $85 billion-a-month of bond buying. Twenty-four of 41 economists surveyed by Bloomberg on Sept. 18-19 said the Fed will take the first step in slowing its bond buying in December.

Gold futures for delivery in December fell 0.9 percent to $1,315.10 an ounce at 10:46 a.m. Eastern time Tuesday on the Comex in New York. The metal declined 3.1 percent in the prior two sessions.

Through Monday, gold fell 21 percent this year as some investors lost faith in the metal as a store of value on optimism that economies are strengthening.

"I'm looking at a monthly close above [$1,435] … to say that the next leg of the gold bull market is on," he said.

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