Market Watch
Gold prices will soar. |
A contrarian speculator couldn't ask for a better sell signal… The International Energy Association reports worldwide demand for crude oil will to accelerate in 2008. The news comes on top of its claim that an oil "supply crunch" is around the corner. |
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| Gold prices will soar. |
| Friday, 11 July 2008 | ||||||||
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Agnico-Eagle Mines (AEM:NYSE) Printing & Bailing R Us -- that's the new name for the Federal Reserve. As they ramp up the presses and bail out the banks, one thing is for sure: Gold prices will soar. The fact is, money supply is expanding at a hyperinflationary rate while credit is shrinking. ![]()
This is a toxic cocktail for exploding gold prices. One stock sure to be shaken, not stirred, is Agnico-Eagle Mines (AEM:NYSE). This Canadian mining company is sitting in the sweet spot with five new mines coming online this year alone. Its 2008 projections are expected to grow by 50%. And it pays a dividend every year. AEM also operates in a safe place -- Quebec. It's tough to find a gold company with production growing this rapidly and with very low cash costs of $200 per ounce. The fundamental story is there, and as gold prices head back over $1,000, AEM will shine. Sally Limantour Editor, Taipan
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