Buy gold miners
Agnico-Eagle (AEM)
Barrick (ABX)
Goldcorp (GG)
Great Basin Gold (GBG)
Rationale
1. Falling dollar makes gold a more attractive safe haven
2. Hedge against inflation which will be caused by future quantitative easing
3. Considerable spread between average cost of mining across all mines (~$580 per ounce) and current futures price (~$1330/ounce)
4. Depressed value of US gold holdings as a percentage of the money supply (~25% of every dollar is backed by gold, below the 40 year average)
5. Depressed ratio of gold price to the S&P 500 index (below the 100 year average)
Sources
1. Bloomberg Businessweek (October 18-October 24)
2. Barrons (October 11)
Nice Aps, the blog looks good. Have you looked into and compared any of the companies yet?
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