ABX 'Top Stock Pick' of Growth Stocks Guru, Who Sees 'Huge Moves' in
Unhedged Gold Mining Stocks as Gold Prices Soar
Ian Wyatt Believes That $3,000 Gold Is Imminent
WASHINGTON (Business Wire EON) March 17, 2008 --
Last Wednesday, gold futures hit the $1,000 an ounce mark. But according
to Ian Wyatt, Chief Investment Strategist for investment advisory
service, Top
Stock Insights, gold prices still have a long way to go.
That’s why Barrick Gold (NYSE:ABX) is the “Top
Stock Pick” of the growth stocks guru, who
sees “huge moves” in
unhedged gold mining stocks as gold prices soar.
“Given the state of the US dollar and a basic
understanding of supply and demand dynamics, I think we’ll
see gold prices hit the $3,000 an ounce mark before it’s
all said and done,” says Wyatt.
“Hitting $1,000 an ounce as gold did last week
may have seemed impossible back when gold was hitting $500 an ounce. But
I’ve been expecting this move for gold. I’ve
been recommending unhedged gold mining stocks,”
he adds.
Wyatt says the forces behind gold prices’
dramatic move higher are feeding off one another. He says, “It’s
like a force of nature when the conditions are just right. A perfect
storm.”
Wyatt believes the storm began when former Fed Chairman Alan Greenspan
cut interest rates too low and left them there too long.
He says, “The US economy was still working
its way out of the stock market collapse. That was a time when,
economically speaking, we had to take our medicine. But the Fed couldn’t
wait. The liquidity pumps were turned on in the form of low rates. And
they were left on way too long.
“The result was a massive depreciation of the
US dollar and the housing bubble. Anytime you debase your currency, the
value of hard assets like gold, and really, commodities in general, is
going to rise.
“Now once again, we have a Fed Chairman who
can’t wait for economic realities to sort
themselves. Sometimes, a company or two needs to go belly up. Instead,
the liquidity pumps have been turned back on. That’s
going to continue to weigh on the dollar. And it’s
going to keep gold prices moving higher.
“We've also got global supply constraints to
consider. I would be remiss if I didn’t
mention the situation in South Africa, where gold production just fell
17% due to limited power supplies. It’s going
to take a long time to build up the infrastructure there to support the
higher production level the world demands.”
Not many on Wall Street are willing to put a price target on gold, but
that doesn’t bother Wyatt. “I
can easily see gold prices hitting $3,000 an ounce. Gold prices hit
their last all-time high in 1980. That was $850 an ounce. Adjust for
inflation, and you get $2,177. So as far as I’m
concerned, gold’s only half way to its highs.
And as any trader will tell you, things don’t
get really interesting until an asset breaks through its former highs.
That’s when panic sets in,”
he says.
Again, Wyatt’s not bothered by the thought of
panic-buying of gold and selling of dollars.
“We’ll be ready. I’ve
been recommending unhedged gold mining stocks recently to my Top
Stock Insights subscribers. Being unhedged simply means that company
hasn’t sold any of its production forward –
the company is prepared to take what the market will pay as it pulls
gold out of the ground. The unhedged miners, and the investors who own
their stock, are the ones who are really going to cash in,”
adds the growth stocks guru.
He says, “Of course, every investor should
own some of the granddaddy of them all: Barrick Gold (NYSE:ABX). After
all, it’s sitting on the biggest reserves of
gold in the world. But it’s the smaller
miners that will you give you more bang for your buck.”
He adds, “I’ve had
Richmont Mines (AMEX:RIC) on my buy list. And I’ve
just published a special report for my Top Stock Insights
subscribers, Gold Rush 2008: 6 Gold Stocks for a Down Market,
featuring 5 other gold mining stocks that are doing great right now but
will make some absolutely huge moves as gold moves toward $3000 an ounce.”
For more on Ian Wyatt’s opinion on gold, plus
information on Gold Rush 2008: 6 Gold Stocks for a Down Market,
visit TopStockInsights.com at the following url:
https://www.topstockinsights.com/s.cfm?oid=125&r=pr_031708
About Top Stock Insights
Top Stock Insights is an investment newsletter led by editor and
chief investment strategist Ian Wyatt and his research team in
Washington DC. Top Stock Insights provides its members with
consistently reliable mid-cap and large-cap growth stock picks,
uncovering companies with proven financial results, a competitive
advantage, market growth drivers, and an attractive valuation.
Post Comment:
Trackback URL: http://eon.businesswire.com/pingpr.php/Q3Jhcy1TaW5nLVByb2YtRmFsdS1Ib3JyLVplcm8=
Bookmark -
Del.icio.us |
Digg |
Furl It |
Spurl |
RawSugar |
Simpy |
Shadows |
Blink It |
My Web
|
