I expect gold to eventually reach at least $2,300 per ounce, in the years ahead," says resource specialist Larry Edelson. In Uncommon Wisdom, he looks to a trio of favorites in the sector.
Edelson explains, "Select investments in gold shares are just about the best thing you can do for your portfolio to ensure your financial health.
"Weakness in the dollar is definitely driving savvy investors into tangible assets - particularly gold. Even central banks are getting in on the act. In fact, Central Banks have bought up hefty amounts of the yellow metal to diversify away from the U.S. dollar.
Russia's central bank announced it bought more gold last month, increasing its gold stocks by 15.6 tonnes.
"The central bank of Sri Lanka announced it's been buying gold to diversify its reserves. Even the tiny island of Mauritius recently purchased two tonnes of gold from the International Monetary Fund (IMF).
"This comes on top of India's central bank purchasing 200 tonnes of gold from the IMF in the largest central bank purchase of gold in 30 years, China's recent admission that it increased its gold reserves by 76% and a recent report by the World Gold Council that overall, central banks have recently become net buyers of gold.
"Everyone, including central bankers, realizes that paper currency is ultimately worthless. Gold has, and will always, stand the test of time. It will hold its value even when other monetary instruments lose theirs.
"I can't say this enough: Gold is the single best protection against the scenario I see unfolding. And, it's an investment to hold for the next several years. In fact, gold is a better long-term investment than any other asset out there, in my opinion.
"Reason: Gold should hold its value more firmly than nearly all other assets during broad declines, and it should substantially outperform during major advances.
"I believe that, long term, it has more upside potential than silver, oil, or copper. Gold is money ... real money ... real wealth. It has stood the test of time, like no other asset in the world.
"And in addition to physical gold, everyone should consider owning some of the top gold mining shares out there, where you get the upside leverage of the price of the precious yellow metal.
"Importantly, investing is gold should be done as part of a core, long-term portfolio. What the price of gold does from one day to the next should not be an issue for you. You're riding a major trend. Let it do most of the work for you.
"And, you must be very selective when it comes to gold shares. But I think everyone should consider owning my top three: Agnico-Eagle Mines (NYSE: AEM), Goldcorp (NYSE: GG) and Kinross Gold (NYSE: KGC)."
Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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Reader Comments (Page 1 of 1)
12-01-2009 @ 10:13PM
Peter Van Schaik said...
So now everyone knows the sky is the limit when it comes to the price of gold. The common wisdom says it has nowhere to go but up. Have to admit that would make me a bit nervous if I owned a pile of gold. The contrarian view has some merit, although it can be a bit tricky on the timing. Keep one thing in mind: It wasn't all that long ago there were forecasts of DOW 35,000 floating about. Sure, at some point inflation will, fortunately for those deeply in debt, be a fact to be dealt with but, in the meantime, there are reasons for the price of gold to falter. http://jpetervanschaik.googlepages.com