Analyst upgrades:

• Sierra Wireless (NASDAQ: SWIR) was upgraded at Jefferies to Hold from Underperform following Q3 results. The firm believes the Wavecom acquisition integration is progressing better than expected and finds the valuation attractive at current levels. The firm raised its price target to $10 from $5.
• Boston Properties (NYSE: BXP) was upgraded to Buy from Hold at Deutsche Bank to reflect the company's recapitalization and better-than-expected occupancy. The firm raised its target to $69 from $46.
• Wyndham (NYSE: WYN) was upgraded to Outperform from Market Perform at FBR Capital after the shares sold off following the company's Q3 results. The firm raised its target to $23 from $15.
• Human Genome (NASDAQ: HGSI) was upgraded to Overweight from Neutral at JPMorgan. Target was raised to $25 from $14.
• Urban Outfitters (NASDAQ: URBN) was upgraded to Overweight from Market Weight at Thomas Weisel as they expect a "meaningful sales and earnings improvement in Q4." Target was raised to $39 from $32.
• Methanex (NASDAQ: MEOH) was upgraded to Buy from Neutral at UBS, citing improved methanol demand following the Q3 report. Target was raised to $19.50 from $17.
• Buffalo Wild Wings (NASDAQ: BWLD) was upgraded at Raymond to Market Perform from Underperform.

Analyst upgrades:

• Pacific Sunwear (NASDAQ: PSUN) was upgraded to Buy from Neutral by Pali Capital, which cited low expectations, new CEO experience, and compelling risk/reward for the upgrade.
• RBC Capital raised Aruba Networks (NASDAQ: ARUN) to Outperform from Sector Perform, based on increased visibility into wireless networking products.
• J. Crew (NYSE: JCG) was upgraded to Hold from Underperform by Needham after the company reported better-than-expected Q2 report and guidance.
• RBC Capital raised Lundin Mining (NYSE: LMC) to Outperform from Sector Perform, citing updated copper forecasts and valuation.
• Netezza (NYSE: NZ) was upgraded to Buy from Accumulate by ThinkEquity.
• Sanofi-Aventis (NYSE: SNY) was raised to Overweight from Neutral by JPMorgan.
• Williams-Sonoma (NYSE: WSM) was upgraded to Buy from Neutral by Goldman.
• Network Engines (NASDAQ: NENG) was raised to Buy from Hold by Cantor.

"Gold has yet to take off in true bull market fashion, but its chart suggests that it's coming," says Mary Anne and Pamela Aden.

In their top-notch The Aden Forecast, the resource experts discuss the outlook for gold as well as some of their favorite mining stocks for investors to consider.

"Considering that the Summer months tend to be slow months, we could still see some short-term weakness.

"More important, however, is the bigger picture as gold is poised to rise during the second half of the year." Here, they discuss their outlook and some favorite ming stocks.

Mary Anne and Pamela Aden are among the advisory world's top authorities on metals and resources.

In a recent Q&A session, the editors of The Aden Forecast answer the most common questions that they are asked by readers as to the current state and future outlook for the precious metals markets.

In addition, the sisters answer what they say is the most frequent question they receive: "What is the best way to buy gold." Here, they offer a review of five strategies for investing in gold, including their top picks among stocks, closed-end funds and ETFs.

TheStreet.com's Jim Cramer says the levels matter so much, so look for names that you like now but would love lower.

All we talk about is levels these days. Have you noticed? Is there any annotation more important in the morning than the one that Bob Byrne makes in the Columnist Conversation? I find myself glued to things like Dow Theory, watching the transports trade. I haven't done that in ages. I look at the bank index and the ProShares UltraShort Financials (SKF - commentary - Cramer's Take) to try to figure out when that group will stop going down ... or I should say, if it will stop going down.

It is one big technical madhouse.

"There's no question these are dangerous times and the financial world is in uncharted waters," caution resource experts Mary Anne and Pamela Aden.

In The Aden Forecast, the sisters offer an exceptional in-depth discussion on inflationary vs. deflationary foreces, their outlook for precious metals, and their top gold and silver positions for long-term investors.

"The global financial system is on very thin ice, teetering on collapse. Global central banks clearly are literally pulling out all the stops to revive lending and the world economy.

"Will these efforts work? Will they be enough? Those are the most important unanswered questions of the day and only time will tell, but we should know much more in the critical month or so ahead. Why?

"The Fed is spending money at an astronomical rate. It's creating this money out of thin air by monetizing bad debts and whatever else it has to. Remember, this is on top of all the other ongoing government expenses and it's extremely inflationary.

"Normally, there is a lag of about a year or so between money creation and inflation but eventually, what's recently happened will result in massive inflation, a much lower U.S. dollar and a soaring gold price.

"The bottom line is this, if the banks start to lend again, then the economy will be on the road to recovery and inflation. But we know the banks are scared and they're being extremely cautious, for good reason.

Gold is trading down $19 today, and pulling several major gold stocks down to new 52 week lows in reaction to the drop in the precious metal.

If you follow gold prices, you know that the past month has not been kind on the commodity, with prices falling from above $900 an ounce a few weeks ago down to its current price of $716.30. Earlier in today's session we actually saw prices trading much lower, breaking through the psychological $700 barrier, and falling all the way down to $695.20 an ounce. This is the first time in 13 months that gold has been under $700, and marks a huge drop from the highs it set back on March 14, when it was at historic highs above $1000 an ounce.

Typically, you would think that recessionary times in America would lead to a rise in gold, but this time around things are a bit different. Not only is America in hard times, but countries all around the world are dealing with their own economic slowdowns, which in turn is pushing currencies around the world lower. As this happens, the dollar, despite the current state of the American economy, has been strengthening against its foreign counterparts. As we all know, gold trades inversely proportionate to the dollar, so any strength in the American currency will result in gold prices dropping, and that is part of what we are seeing right now.

Once again it's ugly out there today. The Dow Jones Industrial Average dropped below 11,000 for the first time in two years, plunging over 2%. The rest of the U.S. stocks are not far behind with both the Nasdaq composite and the S&P 500 down over 2% as well. It's depressing. But you don't have to look far to see a nicer picture, you just have to look up: up north that is.

The Toronto Stock Exchange has fared much better in what has officially become a U.S. bear market. Over the past year, while the S&P 500 sank over 19%, the S&P/TSX Composite index dropped only 3.4%. Year-to-date, while the S&P 500 declined over 16%, the TSX was barely down 1%. And if you stay away from financials on the TSX, you'd fare even better.

How so, you ask, doesn't the Canadian economy closely follows the U.S.'s? It's mostly true as the U.S. is Canada's biggest trading partner and the Canadian economy is intertwined with that of the U.S. For example, some of the layoffs at GM and Ford plants have occurred in Ontario plants, and Canada's unemployment rate edged up to 6.2% in June due to a drop in full-time jobs.

The thing is, though, that the TSX is heavily weighted in mining and oil & gas companies, sectors that have fared better than techs and financials the past year or so. Getting exposure to the Canadian market is very easy since many stocks also trade on U.S. exchanges, the famous of all may be Research in Motion (NASDAQ: RIMM). But there are others, and some of them, the U.S. investor may want to consider.

When gold recently moved above $1,000 the Aden Forecast presciently noted that the metals were overbought and forecast a "well deserved breather" for the precious metals.

Now, with the setback in metals prices, Mary Anne and Pamela Aden explain, "We can't stress enough that you should stay invested in the major uptrend, which still has years to run. Don't get left behind or shaken out." Here is their outlook on metals and some favorite mining stocks.

"Are commodities the new bubble? Have they replaced the real estate bubble, which replaced the
tech stock bubble, as investors move from one bubble to another? It sure looks like it.

"But the big difference is that this metals and commodities bubble has a lot further to go. Why? Basically, the perfect storm has been gathering and it's going to fuel a mega rise that will likely last for years to come.

"Most important is China and other growing nations, which are keeping demand and prices super strong. China's growth has been astounding at over 9% each year for more than 25 years. During that time, China has lifted 300 million people out of poverty and it's quadrupled the average income.

Gold prices hit the $1,000 target for the first time on Thursday as fears about a possible recession increased and the U.S. dollar continued to weaken. The dollar hit yesterday new lows against the euro and sank to 13-year lows against the yen, while crude oil prices busted through the $110 barrier. Still, there have been a handful of notable names that have benefited from the news to trade up to new highs.

Gold has been strong lately, and gold stocks have been following gold's lead. It seems like gold is following its upside trend today as well, as the current surging oil futures made gold prices relatively cheaper for foreign investors who use other currencies.

However, some analysts believe this is far from being over and expect even higher values for the price of gold. Clément Gignac, National Bank Financial 's chief economist and chief strategist, believes that gold prices will reach $1,500 an ounce within the next 12 to 18 months. Nick Barisheff, portfolio manager of the Millennium Bullion Fund, shares the same belief and anticipates that gold could even touch the $2,000 to $3,000 mark in the "next two to three years."

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models which have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Agnico-Eagle Mines is worth a look.

Agnico-Eagle Mines (NYSE: AEM) is a Canada-based gold producer with mining operations located in northwestern Quebec, mine construction projects in northwestern Quebec and northern Finland, and exploration and development activities in Canada, Finland, northern Mexico and the western United States.

Analysts like the fact that Agnico produces about 270,000 ounces of gold annually, and has about five million ounces of gold in proved and provable reserves.

As Michael Fowlkes discussed yesterday, gold prices have been rising strongly over the past few days as fears about a possible recession increased and the U.S. dollar continues to weaken. Gold for February delivery rose in the previous session $9.10 to end at $869.10 an ounce on the New York Mercantile Exchange. There have been a handful of notable names that have benefited from these news to trade up to new highs.

Gold has been strong lately, and gold stocks have been following gold's lead. Gold had a very strong day yesterday, with prices breaking through a new record for the second straight day. Josh Bridges, analyst at JP Morgan, anticipates the new year would be a strong one for gold as "it must be remembered that gold is typically a late-stage performer."

This article is part of a 20 article special report on "Metals, miners and money".

"Gold is a beneficiary of lower interest rates," says Daniel Frishberg, host of BizRadio and editor of The MoneyMan Gold & Oil Report.

He explains, "Gold has closed at his highest level in three decades. The precious metals market senses inflation is higher and economic growth slower than the official government numbers.

"With the price of oil at a record high and food inflation in a double digit zooming up, government statisticians will have us believe third quarter inflation was only 0.8%, the lowest level in 40 years.

"The gold market is not buying the government numbers. Regardless of what Federal Reserve Chairman Bernanke says about containing inflationary pressures or what Treasury Secretary Paulson says about supporting a strong dollar policy, the U.S. dollar is being sacrificed to save the banking industry and prevent an economic slowdown and/or housing market collapse or even a recession.

MOST NOTEWORTHY: The ocean shippers sector, Tesoro, Siemens AG and MGI Pharma were today's noteworthy upgrades:

• Bear Stears upgraded the ocean shippers sector to Market Weight from Market Underweight, citing higher day rates in the dry bulk market. The firm sees potential upside for dry bulk firms Eagle Bulk Shipping (NASDAQ: EGLE), Quintana Maritime Limited (NASDAQ: QMAR) and Ultrapetrol Ltd (NASDAQ: ULTR).
  
• Bernstein raised shares of Tesoro Corporation (NYSE: TSO) to Outperform from Market Perform and expects a rebound in West Coast refining margins.
  
• ING upgraded shares of Siemens AG (NYSE: SI) to Buy from Hold on valuation and the possibility the company may exit businesses.
  
• MGI Pharma (NASDAQ: MOGN) was upgraded at JP Morgan to Overweight from Neutral, citing expectations for a strong Q3, Aloxi re-acceleration, Dacogen growth, and Auqavan opportunity.

OTHER UPGRADES:

• UBS upgraded shares of Agnico-Eagle (NYSE: AEM) to Buy from Neutral.
  
• Banc of America upgraded Everest RE Group (NYSE: RE) and PartnerRe (NYSE: PRE) to Buy from Neutral.
  
• Calamos Asset Management (NASDAQ: CLMS) was upgraded to Neutral from Sell at Goldman Sachs.

Gold mining investors usually find it best to focus on expanding companies with solid reserves. There is a Toronto-based outfit that fits the profile nicely. It has solid production at home, development programs abroad and controls reserves amounting to three times its total production of the past 35 years.

Agnico-Eagle Mines (NYSE: AEM) is a long-established Canadian gold producer, with operations in Quebec and exploration and development activities in Canada, Finland, Mexico and the United States. Agnico-Eagle's LaRonde Mine is Canada's largest gold deposit, in terms of reserves. It also produces copper, zinc, and silver. The mine generates strong earnings and cash flows, providing the foundation for the company's international expansion. Competitors include Barrick Gold (NYSE: ABX), Kinross Gold (NYSE: KGC) and Newmont Mining (NYSE: NEM).

The stock popped earlier in the month, moving higher with the gold mining group, when the price of the precious metal rose above $700 per ounce. Shares subsequently moved into a bullish "flag" consolidation pattern, but began a positive breakout on word earlier this week that drilling had extended the gold zones at the firm's Meadowbank mine project in the Nunavut territory of Canada.

The AEM Price to Book ratio (3.68), Operating Margin (47.19%), Net Profit Margin (29.97%) and Net Income per Employee ($161.06k) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 54% of the outstanding shares. Over the past 52 weeks, the stock has traded between $27.24 and $50.92. A stop-loss of $44.50 looks good here. Note that the firm is expected to report third quarter results in late October.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.