"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.

Continue reading Deflation or hyper-inflation? Gold or bonds?

Deflation or hyper-inflation? Gold or bonds? originally appeared on BloggingStocks on Fri, 07 Nov 2008 15:40:00 EST. Please see our terms for use of feeds.

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.

Pamela Anne Aden, turns to gold for both her favorites for 2007 -- selecting the exchange-traded fund streetTracks Gold Trust (NYSE: GLD) as her conservative investment and Market Vectors Gold Miners Trust (ASE: GDX), also an ETF, as her top speculation.

In The Aden Forecast, the resource sector advisor notes, "There are several reasons why the metals and commodities markets are likely headed higher in the upcoming years. Aside from the ongoing demand out of China and other emerging nations, gross financial imbalances are taking their toll too.

"In recent years, the U.S. has gone heavily into debt. At the same time, China has built up the largest cash reserves in the world. The end result is the largest U.S. budget and trade deficits in history, and this has caused the U.S. dollar to fall over the past five years.

"Since gold and the dollar generally move in opposite directions, these imbalances have also been an important factor driving gold higher. This major financial shift is unlikely to be resolved soon. That means gold and gold shares are poised to rise further in 2007.

"One way to take advantage of these trends is buying the gold ETF, streetTracks Gold, which tracks the price of gold bullion and is a conservative way to invest in this market. The ETF for gold shares -- Market Vectors Gold Miners -- which tracks individual gold mining companies, is a more speculative way to play the sector."

Top Picks 2007: Golden gains for Pamela Aden originally appeared on BloggingStocks on Mon, 25 Dec 2006 14:30:00 EST. Please see our terms for use of feeds.