Aden Sisters: Gold and Silver

03/05/2004 12:00 am EST

Focus:

Mary Anne Aden

Co-Editor, The Aden Forecast

I'm thrilled to add Pamela and Mary Anne Aden  to the list of advisors covered in the Money Show Digest. The sisters are leading financial authorities with a noted expertise in currencies, bonds, interest rates, and natural resources. Here's their latest on gold and silver.

"Let’s start with gold. We know it’s been rising for three years and the major trend is up. Major uptrends in any market are normally marked by intermediate lows ending higher than the previous low. This is what builds an uptrend. Remember, no market goes straight up or straight down and what we’re seeing in precious metals is completely normal. Gold has seen higher lows for the last three years and the current decline should be no exception. As long as gold stays above this rising moving average now at $365, the major trend is up, and $500 would be the next target. Recent weakness presents a good opportunity to buy or add to your positions. For gold shares, we recommend: Newmont Mining (NEM NYSE), Anglogold (AU NYSE), Barrick Gold (ABX NYSE), Glamis Gold (GLG NYSE), Golden Star Resources (GSS ASE), Placer Dome (PDG NYSE), Ashanti (ASL NYSE), Bema Gold (BGO ASE), El Dorado (EGO ASE), and Wheaton River (WHT ASE).

"Meanwhile, silver looks even better than gold. Silver has the characteristic of being a sleeper, but when it wakes up, it quickly makes up for lost time. This has again proven to be the case. Silver has been quietly bottoming since 2001. It popped up last November, gaining 34% in about two months. This is very bullish action. More impressive, silver is now outperforming gold for the first time since 1997. This is important because the ratio has now confirmed a massive upchannel since 1987. This means silver is poised to outperform gold this year. Meanwhile, silver’s been due for a rest. A downward correction would be clearly underway below $6.25 and it could then decline to $5.70. Major support is at $5 and we recommend buying silver during weakness. For silver shares, we continue to recommend: Coeur d’Alene (CDE NYSE), Silver Standard (SSRI NASDAQ), Hecla Mining (HL NYSE), PanAmerican (PAAS NASDAQ) and Apex Silver Mines (SIL ASE)."

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