The Early Stages of a New Bull Market
Wednesday, November 30th, 2005
By Mitchell Clark, B.Comm. for Profit Confidential
If you are a commodity player, 2005 has no doubt been a great year. If you only owned oil or oil and gas stocks, you would have had a great year. Now, with the year almost over, my prediction is that 2006 is going to be different.
Not that the commodity price cycle is over. Not by any stretch. No, oil and gas prices will remain strong (and very profitable for producers), but 2006 is going to be about precious metals.
The spot prices of many precious metals have already appreciated significantly in 2005, but with gold now toying with $500 per ounce, a new gold rush will be on in 2006.
The price of platinum is leading the way. This precious metal often leads the price of gold, and platinum has now crossed the $1,000 per ounce level. It hasn’t reached this level in some 25 years.
The price of copper is strong, and so is silver. Newmont Mining’s CEO, Mr. Pierre Lassonde, recently predicted the price of gold will exceed $1,000 per ounce in five to seven years.
If you haven’t done so already, it is time to talk to your broker. The gold rush is on, and this is what media will be talking about in 2006.
Precious metal mutual funds are a great way to add some exposure to this market sector in your portfolio. Picking individual precious metal stocks is difficult, but there are some great companies out there. Large-cap and small-cap gold stocks offer opportunities right now.
The one thing about commodities is that their prices tend to move in waves. Momentum feeds further momentum, and the price cycle gets high and long. It isn’t too late to be thinking about precious metals in your portfolio. We’re still at the early stages of the next bull market.
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Tags: bull market, Newmont, oil stocks, precious metals, price of gold
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Mitchell is a Senior Editor at Lombardi Financial specializing in small-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Penny Stock Reporter, Micro-Cap Stocks, and Monster Profits. Mitchell, who has been with Lombardi Financial for thirteen years, won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was as a stock broker for a large investment bank. While Mitchell is not working he enjoys fly fishing, motorcycling and tending to his hobby farm.



