The Definitive Guide to 2010 Gold Stocks

There’s no doubt about it… Everything points to higher gold prices this year: Weakness in the U.S. dollar: The value of the dollar has fallen 35% since 2002 and 9% in the past 12 months. Meanwhile, the national debt is approaching $12.5 trillion and the 2010 budget deficit is projected to hit a new record: $1.56 trillion. Economic uncertainty: Investment markets worldwide continue to be on shaky ground. Gold is considered the most respected store of value. It is the ultimate safe haven and the least risky of all investments. Supply constraints: World gold production has fallen every year since 2001. Meanwhile, central banks have now become net buyers of gold after over 30 years of selling. Growing investment demand: Global investment demand has more than tripled in the past few years and continues to spike higher. Cyclical bull market: Gold prices are in a long-term cyclical bull market that will continue to push prices higher. The price of gold has increased over 150% while the Dow Jones has remained flat in the past five years. Advertisement Largest Gas Find in U.S. History Sparks “Louisiana Land Rush” This is big… real big. In the swampy outskirts of Red River Parish, Louisiana — 271 miles northwest of New Orleans — a group of scientists made the discovery of a lifetime… What they found more than 1,000 feet beneath the surface is the single largest natural gas deposit in U.S. History… and so far, the fourth largest deposit ever found on earth! The four companies at the forefront are already up 51%, 80%, 41% and 66% — since March 2009. And they’re poised to run even more. Isn’t it time you made similar gains? Gold bugs are buying the physical metal in the form of bars, coins, and ETFs. Meanwhile, more speculative investors are tapping into gold stocks where the rewards are much higher. Investors buy gold stocks because they have leverage. That means small changes in the price of gold can greatly affect share prices of gold stocks. For example, over the past 12 months gold has increased 23%. But at the same time, AngloGold Ashanti (NYSE: AU ) has increased 40%; Randgold Resources (NASDAQ: GOLD ) is up 68%; and IAMGOLD (NYSE: IAG ) has returned a 112% gain. Of course, the leverage effect goes both ways. And gold companies with falling production — or forecasts of falling production, like DRDGold (NASDAQ: DROOY ) and Kinross Gold (NYSE: KGC ) — have underperformed the underlying metal. While gold has gained 23% in the past year, DRDGold pulled back 21% and Kinross lost about 4%. In 2010, things will be no different. Gold companies with steady and rising production will most likely be this year’s success stories. And those with falling production will be the year’s flops. To get you started investing in gold stocks for 2010, here are… Three Large-Cap Gold Stocks Increasing Production  Barrick Gold (NYSE: ABX )  Share Price:  ~$36  Market Capitalization:  ~$35 billion  2009 Gold Production:  7.2 – 7.6 million ounces  2010 Gold Production Guidance:  7.7 – 8.1 million ounces  Change:  +7% Barrick Gold is the world’s largest gold producer. The company retains a…

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The Definitive Guide to 2010 Gold Stocks

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