Chasing Value: Anglo American diamonds and gold are your best friend

To me Anglo American plc (ADR) (NASDAQ: AAUK) is another must-own stock that could end up in M&A discussions, and in this year of uncertainty that's all the more likely. Let's see, it's a global player in diamonds, gold, silver, platinum, coal, and more. This is a currency play, a commodities play, a global play, and an inflation hedge -- got to love that if you can get it at the right price. It was higher, but the closing price on December 28, 2007, for AAUK was $30.79.

Unlike oil prices that may be affected by the weather, new technologies, or alternative sources, these commodities will remain in demand. Gold may be used instead of silver, platinum instead of gold, but except for locating new supplies the demand for these precious metals and commodities can only grow with the growth of the new economies and the wealth of their citizens.

AAUK was one of my better calls during 2007, up about 30%, but I take pause wondering if it will do well based on economic fear driving precious metals up, or whether it will have to rebalance its mining efforts based on less demand for commodities if there is a slow down.