A gold bug -- By Investor's Digest
Gold bug Irwin Yamamoto, editor of Yamamoto Forecast, says the current pause in the bullion could be a refreshing one.
While the gold price did retreat from the $290-area, the bulls believe the advance will continue after the consolidation in the industry settles down. The bears, however, see the latest move backward as another failure of the metal to surpass the psychologically important $300 mark.
Mr. Yamamoto, however, remains optimistic about the prospects for gold and says the bulls definitely have a case. For one thing, the situation in Afghanistan could be positive for gold for both the short and long term.
"On the other hand, if Osama bin Laden ever gets caught, the price of the metal will plunge overnight. At best, the positive background seems to be fragile."
It's the long-term picture that holds the most promise. The Federal Reserve has been "printing money like there's no tomorrow." This could potentially give rise to inflation which will be the boost gold needs.
In the meantime, keep your eyes and ears open. For the average investor, says Mr. Yamamoto, a five per cent stake in gold shares is appropriate and generally the lower-priced stocks tend to be riskier than the higher-priced ones.
Yamamoto Forecast
Box 573
Kahului, HI
96733
808-877-2690
$350 a year |
