|
The subprime debt problem is getting worse, threatening to send the
U.S. economy into recession. The U.S. dollar is near new multi-year
lows against many major currencies. And the Fed seems destined to cut
interest rates sharply in the months ahead, which should only boost
commodity inflation (oil, grains, etc.). All of these factors have
pushed gold to new all-time price peaks (finally taking out the 1980
highs) above $900 per ounce, which has lit a match under Agnico Eagle
Mines and other gold stocks. We're going back to buy, believing that
this gold rally has legs. Buy a little on the stock's current
retreat.
|