Gold Stocks: Buy Canadian gold miners now

Posted November 21, 2007

“Even I, Mr Über Gold Bull, am amazed at how strong these markets are in the face of the carnage elsewhere. It’s like August, there’s so much bearish sentiment about; the only difference is that this time gold and gold shares are holding up.” — Dominic Frisby

Blogger’s Note: This article was first published by our colleagues at the British MoneyWeek. Hope you concur that it puts a nice, dynamic perspective on the gold and precious metals market.

by Dominic Frisby, MoneyWeek and TFN

Baltimore — (TFN): Well, we got the correction in gold and silver that I’ve been expecting for the last few weeks. Then they bounced straight back up again. Then rocketed as the Federal Reserve released its minutes.

Is the correction over now?

I wish I knew…

I was hoping to see gold pull back to the $750 an ounce area and consolidate for a week or two before the next move up. We may still pull back there, but I must say that even I, Mr Über Gold Bull, am amazed at how strong these markets are in the face of the carnage elsewhere. It’s like August, there’s so much bearish sentiment about; the only difference is that this time gold and gold shares are holding up.

I bought some bullion on Monday. I will buy more if the market drops further. If you’re looking for more guidance on when to buy, then Tom O’Brien, a sometimes very effective market timer, who hosts his own radio show at TFNN, thinks we are headed lower - but I’d warn you that he has not called the move since August well at all.

Could silver be the next uranium?

Jim Dines is one of the more popular US newsletter writers. He has been famously bullish on uranium since the turn of the century and had all his readers invested for the huge surge (and subsequent decline) in prices we saw earlier in the year. In his latest letter, he proclaimed at great length and in great detail the virtues of silver.

Let’s hope silver does what uranium did. Such a thing is possible. It’s happened before. Read on…

Don’t forget to watch this weekend’s Smart Trading Action Alert: Smart Trading Action Alert: Given the beating some blue chips have taken in recent weeks, select small-cap stocks now provide opportunities for safe profits. Ian Cooper explains.