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Yellow Metal

I am convinced gold is going much higher before year-end along with oil prices. I believe OPEC countries are hedging their petrodollars with gold in case of an attack on Iran. I know we have a full portfolio but I will drop something if we get hit on this watch list entry.

I wanted to play Freeport McMoran but FCX is more of a copper play than gold. The chart was stronger than Newmont but the asset base is only a fraction of Newmonts holdings. Since I want to be in a gold play and there are no options on the GLD or IAU I am stuck with Newmont and their 93 million ounces of gold reserves.

I have heard or read forecasts on gold from several people I respect and the numbers will scare you. For various reasons they expect gold to be between $800 and $1000 over the next 18-24 months. I know this sounds crazy and brings back memories of the gold bug infestation back in the 1980s. However, this time we have Peak Oil in the mix and the potential for serious military confrontations over the next two years. India is devouring gold at the highest rate in history and all the factors are lining up for a squeeze.
 

Dropped Entries

None


New Watch List Entries
NEM
Newmont Mining

Current Watch List

NEM $57.52 - Newmont Mining

Newmont Mining Corporation (Newmont) is primarily a gold producer with significant assets or operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, Uzbekistan, Bolivia, New Zealand and Mexico. As of December 31, 2005, Newmont had proven and probable gold reserves of 93.2 million equity ounces and an aggregate land position of approximately 50,600 square miles (131,100 square kilometers). The Company is also engaged in the production of copper, principally through its Batu Hijau operation in Indonesia. Its operations are in Nevada, Peru, Indonesia and Australia/New Zealand and has two development projects in Ghana. The Company also has a Merchant Banking Segment and an Exploration Segment.

Breakdown trigger $53.00
Buy 2008 $60 LEAP Call WIE-AL
 

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