"With gold stocks at very high multiples, I prefer an industrial commodity play: Companhia Vale do Rio Doce (NYSE: VALE)," says Mark Skousen.

In his premium service, The Hedge Fund Trader Alert, he explains, "In addition to being an industrial commodity play, the Brazilian company is a bet on the emerging markets." Here is his review.

"VALE operates as a diversified mining company in iron ore and iron ore pellets, nickel, manganese ore, and ferrous alloys.

"It also engages in producing bauxite, alumina, aluminum, copper, metallurgical and thermal coal, metallurgical coke and methanol, cobalt, potash, and other non-ferrous minerals.

"In addition, it mines precious metals, including platinum-group metals, gold, and silver, so we will benefit from any increase in the gold price.

"In addition to being an industrial commodity play, the Brazilian company is a bet on the emerging markets.

"The company operates railroads, maritime terminals, and a port. Further, it engages in hydroelectric power generation and steel production.

The 'Great Recession' hurt VALE. Revenues fell 41% to $33 billion in the past year, and earnings plunged 81%. 

"But VALE's profit margin is still 24%, one of the highest in the world for an industrial producer, and even with its recovery, the stock still is trading for only 14 times earnings.

"Fed Chairman Ben Bernanke recently reported that the 'recession is over.' That's good news for emerging markets, which are rallying. VALE is a great play on the commodity recovery in emerging markets."