"Don't sell commodities; although they have been in a bruising correction, they can also recover quite sharply," says resource expert Eric Roseman .

In his Commodity Trend Alert, the advisor adds, "And I can't think of a more undervalued gold mining company than South Africa's AngloGold Ashanti (NYSE: AU)."

"The forces of inflation and deflation are now fighting each other for the first time since 2001 and ultimately, inflation will win. For the Fed and other central banks the strategy is to rescue the global financial system from the economic abyss or deflation; that means print credit like there's no tomorrow.

"For the Fed and other central banks the strategy is to rescue the global financial system from the economic abyss or deflation; that means print credit like there's no tomorrow.

"The Fed, the ECB, the Bank of Japan and their international buddies are going to accelerate the expansion of credit to avoid a devastating deflation. Thus, I'm betting on inflation. I'm also betting on gold, my gold stocks.

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AngloGold Ashanti (AU): 'Too low to ignore' originally appeared on BloggingStocks on Fri, 22 Aug 2008 13:58:00 EST. Please see our terms for use of feeds.