"You must own some gold in this economic environment," emphasizes natural resources authority Larry Edelson who sees the recent setback in gold prices as "an ideal time to buy."
"Gold represents the epitome of the natural resource boom. 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.
"And when there are financial crises, as we now have with the plunging dollar and the meltdown in the mortgage markets in the U.S. - gold gets an extra boost. Savvy investors flock to the safety of the precious metal, pushing its price even higher.
"In addition, there's more to the bull market in gold than just inflation and financial problems in the United States. Three billion new consumers in Asia are buying gold hand over fist! Previously in China, investors were not allowed to own gold. Now they can, and they are buying up gold like crazy.
"The recent decline in gold from above $1,000 is prompting gold bears to say that the great gold bull market has reversed itself," says Martin Hutchinson who states, "Let me say right now: They're wrong."
In his Money Map Reporter, he explains, "Thanks to three key catalysts, we may well see gold at $1,500 an ounce this year, if not higher." Here's his outlook and a trio of ways to play this trend.
"These three catalysts – worldwide monetary policy, global supply-and-demand for gold, and gold's past performance – have already ignited a powerful rally that's virtually certain to carry gold to much higher price points, despite the breather the rally appears to be taking right now.
"Don't be fooled. Every rally needs a catalyst – something that ignites and then fuels the bullish trend. As noted above, gold has three. Let's take a look at each of them:
1. Monetary policy: More than for any other investment, gold's price depends primarily on the world's monetary policy. When monetary policy is loose, as it was in the 1970s, gold prices soar. When it is tight, as in the 1980s, prices decline sharply.
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.
Technician Yola Edwards had forecast a rise in gold to $1032; it rose to $1034, before correcting. In her Edwards Charts she offers a technical outlook for gold, Goldcorp (NYSE: GG) and Barrick Gold (NYSE: ABX).
"Gold exceeded my $1032.50 level by posting an intraday high just shy of $1034 but it turned on a dime and plunged over a US$100. The daily chart now indicates prices are oversold according to the MACD and RSI as the price bounces off support at the lower Bollinger band.
"However, a negative bias remains. A corrective wave four will retrace to the top of wave 1 at about US$865 if the decline holds true to theory, which should be viewed as a buying opportunity as the fifth advancing wave should see gold rally to about $1145 over the next four months.
"Goldcorp has traced out a 'U' shaped bottom over the past two years and is now in a consolidation phase. Since pulling back from its high two weeks ago the month ended with a type of spinning top which halted the previous decline.
Resource stock expert Curtis Hesler -- who correctly forecast the recent sharp decline in metals prices -- sees long term value in NovaGold Resources (ASE: NG) for those who buy on pullbacks. In his Professional Timing Service he explains, "Nova Gold has some interesting projects; its Galore Creek contains as much as 13 billion pounds of copper; and at today's price of $3.90, that is not a small deal.
"Galore Creek sits just south of the Yukon Territory in northern British Columbia, and there is virtually no infrastructure, power, or anything else. The original development cost was estimated at $2.2 billion, but it has since jumped to over $5 billion.
"This prompted Nova to announce that they were halting construction and were delaying development. Nova's stock plummeted below $6 in December.
"Meanwhile, Nova has several additional projects in the works; Donlin Creek, a 50-50 partnership with Barrick Gold, is one of the largest unexploited gold bodies in the world with an estimated 29.4 million of gold reserves. With the Galore Creek project on hold, they have the resources to exploit Donlin Creek.
In her Edwards Charts, technical expert Yola Edwards reviews the outlook for gold, as well as her latest new buy recommendation, Barrick Gold (NYSE: ABX).
"Gold rallied faster than anticipated reaching my suggested lower target price of US$978.50 on February 29. The daily candlestick ended in a doji star and it could be setting up an evening star pattern suggesting lower prices ahead if gold cannot close above US$978.50. H
"However, there is a good possibility that the level will be exceeded as both the daily and weekly MACD are on buy signals. Additionally we have two long white advancing candles and a third if formed the first week of March would form a three advancing white soldiers pattern signifying strength ahead and i would then look for a rally to about US $1032.50.
"Keep your gold for the long-term; it's today's best investment," says Mary Anne and Pamela Aden in The Aden Forecast. "Despite normal ups and downs, we strongly believe you'll be glad that you held hold onto your gold."
"Gold, silver and most of the gold shares are about the only markets to show gains so far this year. Everything else is down, and in many cases down sharply. Gold has recently been hitting new, or multi-year highs against the euro, the Dow Industrials, bonds and oil.
"In other words, it's stronger than these other markets. Gold is outperforming them and the percentage gains are greater in gold compared to all of the other markets.
"Simply put, gold is where you want to be. Silver is good too. These are the best markets. That's why we've consistently stressed keeping a large part of your investments in gold, silver and their shares.
"Will there be a recession or not?" asks Mary Anne and Pamela Aden. In The Aden Forecast they note, "The scales are now tipping to inflation," which they view as bullish for gold and silver.
"Sure, the economy will probably slow down in the months ahead and stagflation is also a likelihood. That is, slower economic growth combined with inflation.
"The Fed and the world's largest central banks are working together in a massive, historical concerted intervention to provide all the money and liquidity that's globally needed to keep things rolling along. Money supply, for instance, is soaring at a 16% growth rate, the most in 47 years.
"The latest producer price figure strongly supported our view since it was the highest in 34 years, showing inflation running at a 38% annualized rate. Since producer prices lead consumer prices, this is a huge red flag that big inflation is coming.
"The new record high in the gold price is telling us the same thing, and so are the record highs in oil and the commodity markets. In other words, if a serious recession were coming, gold and commodities would not be soaring.
"Gold is an inflation barometer and the action in this market alone is signaling that inflation will very likely dominate the economic scene in 2008. Inflation is bad for bond prices. It usually means higher interest rates and this time is not an exception.
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.
"Mining is a tough business, with high capital costs and one in which, as the old saw has it, 'Murphy works overtime.' One way to mitigate the risk while remaining exposed to upside in resource prices is through royalties. Royalties come in all shares and sizes; they can be net or gross, fixed or sliding scale, and so on.
"International Royalty Co. has put together an extensive portfolio of over 60 mining royalties, most of which are on properties not currently in production.
"Its crown jewel, accounting for half the company's net asset value, is from a royalty on the world-class Voisey's Bay nickel mine in Labrador, Canada. Many of its other royalties are on gold projects, including its second most important asset, the royalty on Barrick's Pasuca mine in Chile.
"The stock sold off recently after the company raised money for a potential purchase of the royalty division of Newmont Mining; instead, the division was effectively IPO'd. But this decline makes ROY very inexpensive for a low-risk royalty company, selling at just over 10 times next year's estimated cash flow, much less expensive than other royalty companies.
"As metals prices continue to advance and more of the properties on which ROY holds royalties come into production, ROY will benefit tremendously, making it a solid long-term growth story as well as ripe for a rebound from oversold levels."
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 commodity markets have been rising strongly in recent years, propelled by growing demand," says Mary Anne Aden, editor of The Aden Forecast.
"The ongoing boom in China and other emerging markets has been driving these markets higher and there's no sign this will end any time soon. This has consistently placed commodity-related stocks like energy, natural resource and precious metals into the top performing stock category. The same will likely apply in 2008.
"My favorite conservative idea for 2008 for investors to take advantage of the rise in precious metals is by buying the StreetTracks Gold Trust (NYSE: GLD), an exchange-traded fund. Since gold's rise still appears to be in its early phase, it should do well in the year ahead based on demand alone.
"The same is also true of energy. China's demand has been a primary factor driving the oil price higher. With the Olympics coming to China this Summer, this demand is unlikely to diminish. A good way to benefit is to buy the Energy Select SPDR (ASE: XLE), my favorite speculative ideas for 2008."
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.
"My top conservative play for 2008 is a repeat of my top pick from last year, StreetTracks Gold Trust (NYSE: GLD)," says Mark Leibovit, editor of VRYTrader and last year's #1 rated market timer by Timer Digest.
"StreetTracks Gold seeks to reflect the performance of the price of gold bullion, less the trust's expenses. The trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets.
"The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the trust terminates and liquidates its assets, or as otherwise required by law or regulation. The trust is not managed like an active investment vehicle, and it's not registered as an investment company under the Investment Company Act of 1940.
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.
Dan Sullivan, a specialist in relative strength rankings, maintains a position in Freeport-McMoRan Copper and Gold (NYSE: FCX) in his model portfolio. The editor of The Chartist explains, "The world's largest publicly traded copper company, Freeport-McMoRan operates large, long-lived and geographically diverse assets around the world.
"The company owns significant proven and probably reserves of copper, gold, and molybdenum and has an extensive portfolio of expansion and growth projects.
"The company conducts its operations primarily through its principal operating subsidiaries, PT Freeport Indonesia, Phelps Dodge, and Atlantic Copper. PT Freeport Indonesia's principal asset is the world-class Grasberg mine which was discovered in 1988.
"This mine contains the world's largest single copper reserve and the world's largest single gold reserve. It is also a 25% owner of PT Smelting, which operates a copper smelter and refinery in Gresik, Indonesia.
"Phelps Dodge is a fully integrated producer of copper and molybdenum, with mines and processing facilities in North and South America and Europe. Atlantic Copper operates a copper smelter and refinery in Huelva, Spain.
"The company's second-quarter profit surged year-over-year due to the acquisition of Phelps Dodge and increased metal pricing. Net income rose to $1.10 billion, up from $367 million in the year-ago period. Revenue also surged to $5.81 billion, from $1.43 billion last year."
Each day, Steven Halpern's TheStockAdvisors.com website features the latest investment commentary and favorite stock picks of the nation's leading financial newsletter advisors.
"Gold's recent move to a new highs clearly reinforces that the metal's six year bull market is alive and well," say leading resources experts Mary Anne and Pamela Aden.
In The Aden Forecast, the sisters -- who have accurately forecast the bull market since its start in 2001 -- explain why they believe this upmove is part of a mega-trend that will last for many years to come.
"As the dollar falls further, gold will continue to head higher. And the unprecedented trade deficit nearly guarantees that the dollar will continue to slide. Lower U.S. interest rates reinforce this as well, and again that'll be good for gold.
"Meanwhile, U.S. dependence on foreign oil and the record high oil price means the trade deficit is going to stay huge. It'll also contribute to inflation by keeping upward pressure on consumer prices.
"So in a way, it's a vicious circle that goes something like this: high oil = large trade deficits = a weak dollar and high inflation. Spending and money creation = inflation, which all = higher gold.
"The Fed's bailout of the mortgage markets has reignited fears of inflation and of a slow-motion meltdown of the dollar," says Mark Skousen, editor of Forecasts & Strategies.
"That makes now a good time to own mining stocks, particularly Freeport-McMoRan Copper & Gold (NYSE: FCX), which made a very smart move in March when it bought Phelps Dodge for $26 billion. The purchase made Freeport the world's largest publicly-traded copper company.
"It now has a huge, long-lived, geographically diverse portfolio of mining assets. And the acquisition of Phelps is producing tens of millions of dollars in unexpected savings. The buy will result in an immediate 30% spike in Freeport's annual sales.
"With Freeport opening a new copper mine in Arizona ahead of schedule this year -- one that will produce at least 240 million pounds of copper per annum -- and the new company enjoying huge new economies of scale, expect this stock to continue its rapid run."
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"My top conservative play for 2008 is a repeat of my top pick from last year, 
For 25 years, Steven Halpern, editor of 
"The momentum for large-cap gold producers looks very bullish and my top speculative idea for 2008 is 
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