ONLY GOLD IS AS GOOD AS GOLD
Henry Weingarten Last Updated:
6/5 As previously forecast, we believe the US dollar began a
bear market in May. This will accelerate in the 4th Quarter of 2000
into 2001. If so, this will be one MAJOR positive for Gold.
This makes our previously released 2000 year end trading target prices
above $350 and XAU of 101 more probable despite all the obvious negatives
for holding Gold.
We maintain our basic buy and hold of Gold Stocks. Primarily,
we are holding ABX and HM and would trade PDG and watching BHP.
In 2000, we avoid South African mines as having too much country risk.
We prefer Canadian companies which are desirable for their currency appreciation
versus the US Dollar. ABX is a blue chip and is the safest to own
until everyone wants Gold. If that becomes the case, then we will
switch from majors and go play in the Southern Hemisphere (Australia first
and South America second). However, we do not foresee this as likely this
year, although possible in 2001.
"A portfolio without gold is a
luxury you can no longer afford."
The World Gold Council
"The cheapest long term protection against the eventual
US Dollar decline is GOLD."
Our long term recommendations remains the same: just continue to accumulate
GOLD as time goes by. Gold is cheap insurance against both inflation
AND a future declining US Dollar!
Excellent Risk/Reward to buying Gold and Gold stocks over the intermediate
and long term.
We still target GOLD above $300 and the XAU above 100 between the Fall
2000 and 2001.
To see our previous gold buy recommendations, click below: