By Jeff Clark in Advanced Income:

Gold has been under pressure recently, as have the gold stocks. Commodities and stocks often trade inverse to one another. Commodities normally rally as stocks fall and decline as stocks rise. Curiously, it seems commodities and the stock market have joined hips and are moving together. So as the decline in the stock market takes hold, gold and gold stocks will suffer as well.

That's good news for us, as I'd love to add a few gold positions to our portfolio.

Yamana Gold (AUY) is my favorite gold stock. AUY is one of the few gold companies that actually produces earnings. In fact, at the current price of $9.20, AUY trades at just 14 times earnings. As far as gold stocks go, 14 times earnings is dirt-cheap.

But it can get cheaper. During the massive precious-metals correction in the final quarter last year, AUY traded as low as eight times earnings...

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Jeff Clark provides today's MUST READ piece on commodities and the dollar