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October 2007 Archives

There's still time to profit from gold.

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There is still time to profit from the falling dollar. Pick up some gold mining stocks or the gold ETF and add a sprinkle of shares to your portfolio. Goldcorp should climb to 40. Kinross Gold should hit 19. Yamana and ElDorado are adding smaller companies and trying to get bigger. US Gold has good growth prospects. The bigger leaders are Newmont Mining and Barrick Gold. All of these mining companies will prosper in the future as the price of gold continues to rise.

There are several small cap gold mining shares you can research that trade on the Amex. Many of these range in price from three to seven dollars. As time goes on, there will be more consolidation in the gold mining business. If you pick a takeover company, you can reap even more rewards.

Have you noticed any inflation in your life? If so, you might recognize the importance of keeping up with it. Gold is in the first quarter of a long bull market. Set aside three to five per cent of your portfolio and give yourself a small position in the yellow metal. When the mining shares reach the target price, trim half of them and book your profits. Let the remainder ride a while and watch the inflationary trends.

Will I change my investment strategy for '08?

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There's lots of variables in trying to develop a strategy based on a potential political outcome. It is probably best to look at the overall picture and ignore the election outcome.

We will continue to need oil, gasoline, natural gas, propane and heating oil in '08. These products have to be located, drilled for, pumped up, transported, refined, and distributed.

That covers a plethora of companies; some operate internationally, others in the USA and Canada. Most of the USA pipeline companies are currently below their fifty-two week highs. Many pay wonderful dividends of 6-7%. Stick with lasting necessities. Solar? Nuclear? They are years away from being a viable alternative to our existing energy supply. Me? I'm parking most of my surplus cash and all excess profits in pipelines and waiting for clearer direction.

I'll also keep five to seven per cent of my portfolio in gold. It makes a wonderful hedge and with the political landscape, it is bound to rise and fall as threats accelerate then decline on the international front.