"The recent pullback in commodity prices has opened up this window of opportunity," says resources expert Larry Edelson who reaffirms his long-term bullishness on gold.

In his Real Wealth newsletter, he explains, "If you think the slowdown in the U.S. economy is impacting China and other emerging markets - ground zero for the natural resources boom - think again." Here, he discusses his favorite gold plays.

"Not only are the Chinese and Indian economies expected to surge more than 9% this year, countless other economies throughout Asia, the former Soviet states and Latin American countries are also growing by leaps and bounds.

"As long as this massive new demand continues, natural resources and commodities will continue to soar And investors who use temporary pull-backs in this long-term bull market stand to multiply their money - over and over again - for years to come.

"You must own some gold in this economic environment. Gold represents the epitome of the natural resource boom because it is the world's best barometer of inflation and financial crises. When inflation is on the rise, as it is now all over the world, gold thrives.

MOST NOTEWORTHY: BHP Billiton, Rio Tinto and Prudential Financial were today's noteworthy upgrades:

• Bernstein upgraded shares of BHP Billiton (NYSE: BHP) and Rio Tinto (NYSE: RTP) to Outperform from Market Perform as they believe urbanization in China will increase demand for metals.
  
• Prudential Financial (NYSE: PRU) was raised to Overweight from Underweight at Lehman as they believe the company's exposure to commercial mortgage-backed securities is limited.

OTHER UPGRADES:

• SL Green Realty (NYSE: SLG) and Brookfield Properties (NYSE: BPO) were upgraded at Credit Suisse to Neutral from Underperform.
  
• Yamana Gold (NYSE: AUY) was raised at UBS to Buy from Neutral.

"Gold is the only true hedge against the falling dollar, the unfolding credit crisis, inflation, and geopolitical turmoil," notes resource expert Larry Edelson in Real Wealth. Here's a look at Yamana Gold (NYSE: AUY).

"I've been saying for a long time that gold could hit $1,000. Many called me crazy. Now, all of the market fundamentals - from the beleaguered U.S. economy that faces imminent inflation spikes to a battered dollar and global economic uncertainty – point to gold taking off to well above $1,000 an ounce.

"This is great news for our the gold positions in your portfolio, including our newest recommendation, Yamana Gold. Yamana is aToronto-based miner that has operations in both North and South America.

"Last year, the company produced 773,000 ounces of gold. This year, the company expects to boost production to 1.3 million ounces.That's a 68% increase!

"On top of that, if AUY's quarterly profits come in at the expected 22 cents a share when they report earnings on March 25, that would put full-year profits at 77 cents a share -- 1,000% higher than last year! If this happens, and it looks like it will, these shares are primed for a nice upward move."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Illumina (NASDAQ: ILMN): Settles patent lawsuit with major rival Affymetrix (NASDAQ: AFFX). Shares trade up to $75.20 against 52-week low of $28.11.

Kinross Gold (NYSE: KGC): Price of gold and gold producers just keeps rising. Stock moves up to $22.86 from 52-week low of $9.87.

Yamana Gold (NYSE: AUY): Gold again. Rises to $16.30 from 52-week low of $8.40.

PepsiCo (NYSE: PEP): Soft-drinks sales aren't hurt by recessions, as far as anyone knows. Trades up to $79.79 from 52-week low of $61.89.

Douglas A. McIntyre is an editor at 247wallst.com.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"The momentum for large-cap gold producers looks very bullish and my top speculative idea for 2008 is Yamana Gold (NYSE: AUY)," says Eric Roseman, editor of Commodity Trend Alert.

"Based in Toronto, Canada, Yamana is a large-cap gold-mining company with probably the best exploration portfolio in all of Central and South America.

"Yamana Gold had been heavily battered due to its buyout of Meridian Gold and Northern Orion. With these acquisitions now completed, the overhang of merger uncertainty has been lifted and the stock has sharply rallied off its 52-week low.

"The big picture for Yamana is a great portfolio of first-rate mines in Central and South America, booming earnings, rising positive cash-flow and production costs of $339 per ounce.

Here's a defensive/growth hybrid that, I am underscoring, is only for those investors who can tolerate at least moderate risk: it's not for the low-risk investor.

Historically, mining stocks in general and gold stocks in specific are not defensive plays. But Yamana Gold Inc. (NYSE: AUY) breaks the mold. Yamana operates mines in Central and South America with 7 million ounces of proven and provable reserves. In general, analysts project solid gold production gains for Yamana, with the company adding copper to its mining plans, moving forward. The Reuters F2007/F2008 EPS consensus estimate for AUY are 75 cents to $1.00.

Still, as one realizes, production is not the only factor in a mining company's success. The price of precious metals is just as important, and the argument here is that demand for gold will remain strong: driven by jewelry and industrial uses. And, of course, there's gold's use as an inflation hedge. (Gold traded Monday at $792.60 per ounce, up $5.10.) The aforementioned, combined with Yamana's cost containment, make a better-than-adequate case for AUY's shares.

[Note: Technical analysis agnostics stop reading here; all others continue.]

Technically, Yamana's chart is adequate. The stock has recovered from a summer sell-off and is above its 50-day and 200-day moving averages.

Stock Analysis: Yamana is a moderate-risk stock not suitable for low-risk investors. Consider buying AUY's shares if you can tolerate moderate risk, but do not make AUY your primary defensive stock investment. Sell / Stop Loss if you were to buy it: $8.50.

Resources expert Larry Edelson has just completed a six week tour of Asia; from his final stop in Dubai, he writes, "Gold is being gobbled up like it's going out of style."

The editor of Real Wealth notes, "In my 30 years in the gold market I have never seen the volume of gold trading and the lust for the precious yellow metal like I saw in Dubai." Here's his latest buys in the sector.

He explains, "The major fundamental forces behind high gold prices haven't changed. The U.S. dollar is very weak in the knees and inflation is rampant, despite what the government's numbers say."

He notes that the U.S. dollar continues to lose value against other major currencies. He points to both private and public debt problems as the root cause, along with troubles in the real estate sector and "political infighting" that is maaking foreign investors "think twice" about putting their money in the U.S.

He forecasts that the dollar's decline will continue, which in turn, will push up inflation. He notes, "All you have to do is look at your monthly bills and regular purchases."

To protect against inflation, he believes the best strategy is to invest in gold. And in this sector, he offers two new mining recommendations.

MOST NOTEWORTHY: Whirlpool Corp (WHR), Amazon.com, Inc (AMZN), Arkansas Best Corp (ABFS) and Capital One Financial Corp (COF) were today's more noteworthy upgrades:

• Citigroup upgraded Whirlpool Corp (NYSE: WHR) to Hold from Sell with a $107 target after better-than-expected Q1 results.

• Amazon.com Inc (NASDAQ: AMZN) was upgraded to Market Perform from Underperform at Piper Jaffray, to Hold from Sell at Citigroup, to Neutral from Underperform at Cowen, to Sector Perform from Underperform at Pacific Crest and to Buy from Hold at BWS Financial.

• Elsewhere, Stephens raised Arkansas Best Corp (NASDAQ: ABFS) to Equal Weight from Underweight with a $30 target.

• Bernstein upgraded Capital One Financial (NYSE: COF) to Outperform from Market Perform...

OTHER UPGRADES:

• Key Bank Capital Markets upgraded Cheesecake Factory Inc (NASDAQ: CAKE) to Buy from Hold.

• Alcatel-Lucent (NYSE: ALU) was upgraded to Buy from Neutral at Goldman.

• Stifel upgraded Advance Auto Parts, Inc (NYSE: AAP) to Buy from Hold with a $48 target.

• UBS raised Yamana Gold Inc's (NYSE: AUY) rating to Neutral from Reduce.

• Longbow Research upgraded Parker Hannifin (NYSE: PH) to Buy from Neutral.

• Lehman upgraded American Standard Cos (NYSE: ASD) to Buy from Hold with a $50 target.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).