Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

How to disembowel an economy

By Alex Cowie - posted Monday, 24 May 2010


About the only part of the resource sector having a good time at the moment are gold companies. My return flight from Sydney was delayed so I only caught the last few minutes of the presentation from Castlemaine Goldfields (ASX:CGT), a developing gold company in Victoria.

The price of gold is rising fast on the back of the proposed “money-printing” by the European Central Bank.

The investment banks are already raising their gold price forecasts for this year. Goldman Sachs has just increased the upper range of its forecast band for the rest of this year from US$1,200 to US$1,300.

Advertisement

James Turk, the founder of Gold Money, told investors at the 2010 World Mining Investment Conference yesterday that he is forecasting gold to hit US$2,000 by the end of this year (currently US$1,197), and silver to hit US$30 (currently US$18.22).

Turk's five year forecast is what stood out for me though. He is expecting gold to get closer to US$8,000 by 2015.

More than half of the current Diggers and Drillers portfolio is in precious metals (gold, silver and platinum) stocks, all of which are mining overseas thereby avoiding any potential exposure to the Rudd tax proposal. I plan to recommend another good gold stock soon, and I will be applying my usual analysis to select the best out of the five precious metals stocks that are currently ticking my boxes. Time will tell which it'll be.

But I can tell you one thing for sure right now.

I will be recommending a company that operates in an overseas country far from the government's clutches.

  1. Pages:
  2. 1
  3. 2
  4. Page 3
  5. All

First published in The Money Morning on May 20, 2010.



Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

19 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Dr Alex Cowie is the editor of Diggers & Drillers.

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Article Tools
Comment 19 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy