"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.

When gold was trading above $1,000 an ounce, Curtis Hesler reversed his buy signal and fortuitously warned of a seasonal pullback expected over the summer.

In his The Professional Timing Service, he stated, "Gold should settle into the cyclical and seasonal lows due in early August. Although you will hear plenty of bearish arguments as gold prices pull back, weakness will be a buying opportunity."

He now explains, "I don't think there is much left on downside for the mining shares. We will likely see the miners firm up and begin to rally before the bullion. My adice is to hold tight and exploit the fear.

"This weakness presents a final opportunity before the late summer and early fall strength returns to precious metals. The coast is clearing for gold to advance to new highs by October when its next seasonal high is due.

"Longer-term, I can't help but wonder if gold isn't anticipating the next break in the dollar. We all should be thinking about the trillions of dollars in U.S. government unfunded liabilities for Medicare, Social Security, pensions, etc. There's going to be a tsunami of dollars printed to cover all of that.

"At the top of my buy list is Kinross (NYSE: KGC). Yamana (NYSE: AUY) is an excellent diversification in the precious metals sector. Also among my favorites is Goldcorp (NYSE: GG)."

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

If you're hearing whispers that the dollar might be creeping up in value and that this might put downward pressure on commodities, then let me tell you: Don't you believe it. Although some upward adjustment might occur for the dollar, it's my opinion that this won't, by itself, reduce commodity prices. To think so is just too limited an economic scope.

First, we can believe that the platform of oil prices is going to hold solid. I do think that the price of oil will eventually recede, but it's not going to be soon and it's not going to be much. It'll be a couple years before we see any real decline, if we ever do. That reality gives us a good launching point for some speculation. Alternative fueling for motor vehicles will keep upward pressure on oils other than petroleum. Consider commodity soybeans, soybean oil, and palm oil as possible hedges. There's also potential in propane, and to me, natural gas is still artificially under valued. You might not think there's a relationship between these commodities and petroleum. Believe me though, there is. Also, like the high volume traded commodities, other vegetable oils, such as sunflower oil and cottonseed oil, are worth looking into.

The price of gold and other precious metals has been rallying sharply, helped by a falling dollar, worries about rising inflation and concerns over the health of the global financial system. So far this year, the yellow metal is up around 20%.

Gold mining shares have not fared as well. They have been held back by broad-based weakness in equity markets and the prospect that higher costs for energy and other commodities could cut into those companies' operating profits.

Since the value of the ratio of the Market Vectors Gold Miners ETF (AMEX: GDX) to the streetTRACKS Gold Shares ETF (AMEX: GLD) hit a peak on October 31st, the yellow metal has outpaced the basket of mining shares by almost 20 percentage points.

"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.

It was only yesterday that I wrote about Freeport McMoRan Copper & Gold (NYSE: FCX), noting the favorable metrics and that I put it on my watch list. And this morning I find that Gold & platinum prices soared to new highs, with gold futures setting a new record of $952.40 an ounce.

It seems investors the world over are rediscovering the precious metal after years of neglect. How could you expect anything else with social unrest, war and recession fears on the front pages of every newspaper, with China and India growing rapidly, placing high demand on all commodities, and with a head-in-the-sand administration just now lifting itself up to take a gander at the last few months of its dubious leadership.

Despite recession fears, there is also the serious possibility of dramatic inflation in the next few years based on deficit spending, the ever expanding federal government and lack of concern for the value (buying power) of the currency. It's pitiful. Gold has been an historic hedge against inflation, so why should now be any different?This has ignited one of my 2008 picks Chasing Value: Anglo American (AAUK) is down...but!, which has moved up sharply in the last week.

I do not know where the ceiling is on gold prices, but it does not seem historically high, and I still think AAUK and FCX belong on everyone's watch list.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of AAUK.

CME Group is preliminary talks to buy energy/precious metals market Nymex, CME announced Monday, in a statement.

Under terms being discussed, CME Group Inc. (NYSE: CME), the world's largest derivatives exchange, would pay Nymex Holdings, Inc. (NYSE: NMX) $36 per share in cash and 0.123 of a CME common share, which would value the deal at about $11 billion, Reuters reported Monday.

Nymex shares rose $9.01 to $116.17 on the news, while CME's shares fell $12.77 to $616.01 in Monday afternoon trading.

CME Group was created in July 2007 via the merger of the Chicago Mercantile Exchange and the Chicago Board of Trade in a $9.3-billion deal. Nymex, which is short for the New York Mercantile Exchange, went public in November 2006.

This article is part of a 20 article special report on "Metals, miners and money".

"Gold is a beneficiary of lower interest rates," says Daniel Frishberg, host of BizRadio and editor of The MoneyMan Gold & Oil Report.

He explains, "Gold has closed at his highest level in three decades. The precious metals market senses inflation is higher and economic growth slower than the official government numbers.

"With the price of oil at a record high and food inflation in a double digit zooming up, government statisticians will have us believe third quarter inflation was only 0.8%, the lowest level in 40 years.

"The gold market is not buying the government numbers. Regardless of what Federal Reserve Chairman Bernanke says about containing inflationary pressures or what Treasury Secretary Paulson says about supporting a strong dollar policy, the U.S. dollar is being sacrificed to save the banking industry and prevent an economic slowdown and/or housing market collapse or even a recession.

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.

In times of political and/or financial uncertainty, many investors turn to precious metals as stable investment vehicles. Even in this sector it pays to be choosy. Canadian mining form Goldcorp Inc. (NYSE: GG) is highly regarded in the gold mining industry for its low-cost operations. Goldcorp does run efficient operations in Mexico, Canada, Guatemala, and has some of the lowest mining to market costs of any of its competitors. But the latest earnings report (August 9) reveals some short-term difficulties. Slower than anticipated start-up volumes at several locations in Mexico and engineering problems at a mine in Nevada combined to drive up production costs. Even though gold production was up 63% thus far in 2007, and gold sales are also up, 2Q net earnings were $95.3 million, $30 million less than 1Q 2007 and $40 million less than 2Q 2006. The impact of these problems caused CEO Kevin McArthur to reduce FY production estimates 10%, from 2.5 million ounces of gold to the 2.2-2.3 million ounce range at an average production cost of $150, still a very favorable production cost figure.

In its favor, Goldcorp maintains a tight control on costs and recently sold its interests in several mining operations for $300 million. At the company's Penasquito mine in Mexico, proven and probable reserves of gold, silver, lead and zinc all exceed initial mining survey estimates. Once the Penasquito mine is running at or near capacity, the payout will be very favorable to Goldcorp, barring unforeseen negatives such as political, labor or environmental problems in Mexico. Goldcorp sells all its gold on the open market at spot prices, a strategy which generally works in the company's favor as gold, currently $660.85 per Troy ounce, seems only to go up in price.

For a company with many favorables, the stock bounces around a lot. Goldcorp stock opened the year trading at $27.34, hit a high of $28.84 on Valentine' Day (are gentlemen buying gold rather than flowers and chocolates these days?), then dropped more than 20% to close recently at $22.67, down $0.26.

They're calling it a volatile market. That's like referring to World War II as "that skirmish over in Europe." Come on people, I don't even do the investing game professionally, but I can sure read the writing on the wall. I've been telling you since around Christmas time of 2006 that we are setting up for a massive worldwide economic realignment. I can't predict exactly when the bottom will fall out, but it's coming. Oh yes, it's coming.

You probably don't want my advice but I'll give it to you anyway. Reduce your debt load immediately and cut your risk ventures to the bone. Precious metals might provide some protection, but I myself would remain cautious at this time. Although, generally speaking, precious metals provide relative safe haven in times when the stock markets show weakness, a strengthening dollar tends to dilute that, and the current international economic churning should actually brace up the dollar, aided by an upward swing in manufacturing output and a slight decline in the gap between import and export totals. Gold production and recovery efforts are running in high gear right now, and that increased output is crimping gold's usual hedge function from the supply side.

Gold is up, silver is up, titanium is up, uranium is way up. What is up with Silver Standard Resources Inc. (NASDAQ: SSRI) that its 2Q 2007 earnings were not earnings at all, but in fact a $5 million (Canadian) loss? 2006 was not an especially good year for Silver Standard, yet in 2Q 2006 the company managed to show a $16.5 million (Canadian) profit. Losses for the first half of 2007 total $6.5 million (Canadian), with the bulk of that loss coming in the second quarter. In the first half of 2006, the company posted earnings of $15.4 million (Canadian). The company is currently digging itself into a deep hole.

Sometimes a company reveals move by what it does not say in a press release. That is the case with the 2Q 2007 earnings press release, which does not include a Management Discussion and Analysis section. The press release mistakenly refers to Financial Highlights for the quarter, of which there were none. Yet the company's balance sheet is still strong. Silver Standard has $230 million (Canadian) in working assets, plus inventory of silver bullion worth $10 million (Canadian) at current market values. The company carries NO long term debt, so it is not time for investors to run for the exits. Patient investors may yet be rewarded. Silver Standard is ramping up operations on a number of fronts in Argentina, Peru, Mexico, Canada and Nevada. All these early stage projects require huge outlays of capital before they produce significant returns on investment. If by mid-2008, Silver Standard cannot produce some better news for investors, then it might be time to measure the opportunity cost of continuing to hold on to this investment.

The stock closed at $34.50 (U.S.) today, down $1.50.

Pan American Silver Corporation (NASDAQ: PAAS) demonstrates some of the problems with precious metals mining company stocks. No matter the location of operations, all precious metals mining companies are governed by the same set of rules that affect profitability: mining-operations costs, including production costs which can vary widely from mine to mine; grade quality of ore mined, including how much usable by-product is also produced; economy of scale, although sometimes in mining bigger is not of necessity better; and prices of precious metals on the worldwide spot market. A recent PAAS quarterly earnings release illustrates these factors and the damage they can inflict even on well-run mining operations.

The good news for PAAS 1Q 2007 net income is that there was, in fact, income during the quarter: $20.4 million or $0.27 per share compared to a 1Q 2006 loss of $2.8 million or $0.04 loss per share. $10.25 million or $0.13 per share of net income was derived from the decision to sell a portion of mining operations in Russia. 1Q 2007 sales increased 5% to just over $48 million. FY 2007 total production is forecast to increase 31% to 17 million ounces.

With the dollar testing multi-year lows against some foreign currencies and rising prices for food and energy stoking worries about higher inflation, some investors are eyeing precious metals as a hedge.

Given gold's seasonal tendencies, the timing may be right for a bullish short-term bet on the yellow metal.

Based on an analysis of the seasonal pattern of spot gold (which has an equivalent exchange-traded fund, or ETF (AMEX: GLD)) from 1982 -- 2006, the next three months mark the seasonally strongest period of the year for the precious metal. In fact, over the 24-year span, the dollar-price per ounce has gained, on average, more than 4% from mid-July through mid-October.

While it is hard to say for sure why bullish forces come to the fore around this time of the year, one possible reason is significant purchases of gold by jewelers ahead of the holiday gift-giving season.

Of course, there are no guarantees that bearish influences won't overwhelm seasonal influences and depress the price of gold in the near term. Nonetheless, history suggests that now could be time for gold to shine.

Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle: An Insider's Guide to Successful Investing in a Changing World.

"Finding the right natural resource at the right time can be spectacularly rewarding," notes Ivan Martchev. One such opportunity according to the resources advisor may be palladium.

Here, the in his Vital Resource Investor he looks at the overall market for the metals and a pair of mining plays in this specialized sector – Stillwater Mining (NYSE: SWC) and North American Palladium (ASE: PAL)

Martchev explains, "Palladium is the only one of the precious metals that still trades nearly 70% below its 2000 high. While that in and of itself doesn't suggest that palladium is undervalued, I think it has great potential."

He points out that the platinum group metals (PGMs) -- platinum, palladium, osmium, ruthenium, iridium and rhodium -- have unique characteristics as industrial metals. The most well known, he observes, is their use in catalytic converters for automobiles.

Indeed, he notes, the catalytic converter market drives platinum and palladium. He explains, "The recent bid under palladium is very much an expression of environmental concerns and tightening legislation worldwide on emission standards, which is likely to get tougher and tougher.

Meanwhile, he points out, "Only platinum and palladium have dedicated miners, while the rest of the PGMs are byproducts of platinum and palladium mining." And, he adds, the majority of PGMs are found in South Africa and Russia.

How do you play it as a US-based investor? He suggests that there are two primary North American miners that deal in PGMs, one in Canada, one in the US. The only US-based producer, he says, is Stillwater Mining (NYSE: SWC).