Here we offer a four-pack of picks, with a wide variety of lesser-known gold plays - from trading specialist Mark Leibovit, global investment expert Vivian Lewis, the top stock pickers at Marketocracy, and global economist Mark Skousen. Here are their latest favorites.
"Folks, we're
only beginning a multi-year upmove in gold," says Mark Leibovit,
editor of the top-ranked trading service, VRTrader.
"Surprises are still to the upside in this
dynamic market. At some point, gold will cross $560 an ounce on its way back to $800. It
may be six months, 12 months, or even may be two years, but it is coming." Some of
the gold positions in his trading portfolio are Kinross Gold (KGC NYSE), with a target of $10.30 and a stop at $6.50;
Goldstar Resources (GSS ASE), with a target of $11 and a stop at $5, and Taseko Mines (TKOCF NASDAQ),
with a target of $2.25 and a stop at $0.75. He also notes, "
Watch the South Africans
as a possible catchup play against other gold stocks, as the
South African Rand reverses direction. Buy Durban Roodepoort Deep Ltd. (DROOY NASDAQ)
with a target of $3.50 and a stop at $1.80."
"Being a bargain hunter from way back, I recommend our cheapest
gold and precious metals shares," says Vivian Lewis, editor of
Global Investing. "I had previously forecast that we would see $400 gold by
the end of the first quarter of 2004. That forecast came true quicker than I
expected. We have current buy ratings on Johnson Matthey (JMPLY NASDAQ) Sons of Gwalia, (SOGAY NASDAQ), and Gold Fields Ltd.
(GFI NYSE). All three of the companies suffer from being
from countries with relatively high costs (Britain, Australia, and South Africa)
while gold and platinum are priced in the sinking US dollar. But if you believe,
as I do, that the price of gold is headed upward, these shares will recover
soon."
In addition to its top-performing funds, Marketocracy
has
expanded its services to a monthly newsletter, MarketScope, and a trading
service, Stock
Alerts, which highlights stocks that are seeing an increase in
buy among its "best" stock pickers vs. selling by the "rest." Says
Ken Kam, "One situation where the best investors are buying and the rest are selling is Randgold Resources Ltd. (GOLD NASDAQ).
The company is engaged in surface gold mining, exploration
and related activities in the country of West Africa. The best investors under our
coverage increased their holdings by 23%, while the rest decreased holdings by 11%. After the
best added 23% to their existing position, GOLD became a top 5%
holding in the ‘best portfolio’."
"Gold is still looking
positive," says Mark Skousen, editor ofForecasts & Strategies. "We continue to recommend
Newmont (NEM NYSE), AngloGold (AU NYSE), and Freeport McMoRan (FCX NYSE), a good copper/gold play. We want to keep
everything in our portfolio as we head into the year-end. Meanwhile, an indirect
play on gold is Collectors Universe (CLCT NASDAQ) has been on a wild ride lately. I've been
told that a major mutual fund is accumulating large positions in CLCT as an
undervalued way to play gold. I agree. Keep buying. CLCT could hit $10 a share
within a few months."
