04/29/2005 12:00 am EST
Las Vegas offers a "golden" opportunity to gain insights from Mary Anne and Pamela Aden, who note, "A new era began in 2000, when a mega shift occurred from financial assets like stocks to tangible assets like gold." Here's how to play this trend.
"This shift that began in 2000 is only the third time this has happened since 1919 and these mega shifts usually take a long time. The previous one lasted 14 years. In other words, gold is now stronger than stocks and bonds and the percentage gains will likely continue to be greater in gold in the years ahead. The best way to do that is by holding gold, other precious metals, and foreign currencies, which will continue to rise as the dollar heads lower.
"Sure, there will be ups and downs. In the past three months, for instance, the markets haven’t done much but the long-term trends remain intact and that’s what’s most important. We haven’t always been so keen on gold, but we have been in recent years due to the mega investment shift that happened in 2000 and the events since then. Remember, gold is the ultimate currency and it always has been. Throughout history, paper currencies have come and gone but gold is real money and it’s maintained its value over the centuries. It has a 5000-year track record, which no other investment can claim. If nothing else, think of gold as an insurance policy. During these volatile and uncertain times, we don’t believe you’ll regret it.
"We recommend a 50% position in gold, silver, and the various shares. The strongest shares are: Barrick Gold (ABX NYSE), Agnico Eagle (AEM NYSE), Pan American Silver (PAAS NASDAQ) and Royal Gold (RGLD NASDAQ), which is our latest position. We also continue to recommend: Newmont Mining (NEM NYSE), El Dorado (EGO ASE), GoldCorp (GG NYSE), which recently took over Wheaton, which was one of our favorites.Among mutual funds, we suggest Tocqueville Gold (TGLDX), US Global Mining (UNWPX), and the closed-end Central Fund of Canada (CEF ASE) and the exchange-traded fund, streetTracks Gold (GLD NYSE)."