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Top resource ideas: ASA Ltd. (ASA) offers gold at a discount

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

In his Commodity Trend Alert, Eric Roseman believes a short-term correction is "highly likely." But the resource expert still considers ASA Limited (NYSE: ASA) a "terrific bargain."

He explains, "For value investors, a great buying opportunity in commodities looms this fall. The fundamentals for commodities remain extremely bullish as we progress into 2008. A weaker U.S. dollar, lower interest rates, and supply deficits across a spectrum of raw materials promises to snowball into another formidable rally for commodities."

However, he cautions, this buying opportunity will come after a "period of digestion." He observes, "Commodities indices have come a long way over the last two months following the mid-August market low. Heavy investor speculation in many raw materials -- namely oil, gold, and wheat -- implies a short-term correction is highly likely."

The advisor notes, "Banks, hedge funds, individual investors, and sovereign wealth funds are all on the same side of the dollar bear market ship; historically, too many bears on the same side of a trade means someone will lose their shirt -- and soon."

Continue reading Top resource ideas: ASA Ltd. (ASA) offers gold at a discount

Top Picks 2007: Sy Harding sees gold at ASA

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

ASA Bermuda Ltd. (NYSE: ASA), a precious metals closed-end investment company, is the favorite speculation for 2007 from Sy Harding. The editor of StreetSmart Reports explains, "Its by-laws require that it have at least 80% of its investments in the stocks of gold, silver, platinum, or diamond mining companies.

"Its holdings at year-end 2006 were approximately 70% in gold mining companies, with its largest holdings including Gold Fields Ltd., AngloGold Ashanti, and Barrick Gold. The balance of its assets are in other natural resource stocks including Anglo Platinum, Anglo American PLC, and Impala Platinum.

"We expect the bull market in gold and precious metals, which began in 2001, will continue in 2007. Gold tends to move opposite to the U.S. dollar, and in the same direction as the price of crude oil and inflation in general. Many analysts believe the U.S. dollar will be in a continuing downtrend in 2007. Meanwhile, the Federal Reserve says it is still concerned about rising inflation.

Continue reading Top Picks 2007: Sy Harding sees gold at ASA

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Last updated: October 10, 2008: 03:19 PM

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