January 06, 2006

Gold - from the man who has been right for as long as I can remember

Gold mining stocks are wise portfolio insurance in dollar-based portfolios, because gold will hold its value should a major new dollar bear market emerge. On a global basis, this is an industry that has above-average political risk, because it is increasingly reliant on production from unstable Third World nations. It may also have aboveaverage litigation risk because of pollution problems. Emphasize the majors with broadly-diversified production portfolios, and smaller companies with properties in politically-secure areas.

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