"Gold is now preparing for its next major move ... to new record highs ... and ultimately, to at least $2,300 an ounce," forecasts resource specialist Larry Edelson.

The editor of Real Wealth suggests, "My view is that investors should listen to gold and what it's telling you. I have absolutely no doubt in my mind, whatsoever, that the next phase of Bernanke and Washington's plan to devalue the dollar is now in motion ... I consider it absolutely essential that your portfolio is invested in core gold positions."

Minyanville contributor Lance Lewis dares to share the kind of keen insight and actionable information you won't find in any prospectus. For more original thought, visit www.minyanville.com.

Professor Lewis,

Interesting times, eh what? Is gold being sold -- as the dollar trips down beneath 106 yen -- to raise cash?

For example, was the hedge fund world heavily invested enough there to make gold vulnerable as the ill effects of Lehman work themselves through the system?

Also, any current thoughts about Golden Star Resources Ltd. (NYSE: GSS), Yamana Gold Inc. (NYSE: AUY), Kinross Gold Corporation (NYSE: KGC), and the NYSE gold ETF (NYSE: GLD)?

Cheers,
Minyan Bill

MB,

I think you are just seeing gold (and gold stocks) flag a bit here.

Now that we have a deal from Congress, I expect everything is likely going to melt up, but gold and gold equities should rally more (and even make new highs) given the inflationary nature of this deal. Meanwhile, the rally in stocks is likely to just be a bear market rally. This $700 bln will keep the financial system functioning, but it's not a cure-all. It's also going to further cement the stagflationary forces that are pressing in from all sides. That's good for gold but not good for much else.

As for the dollar, I'm not sure we'll see new lows because the G7 will no doubt try and support it, but we could see the DXY move back to its July lows potentially after this bill has passed.

As for thoughts on GSS, KGC, AUY, and GLD, I like them all at these prices.

Prof. Lewis

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.