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Strategies & Market Trends : 50% Gains Investing

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To: Dale Baker who wrote (41112)5/2/2005 8:22:58 AM
From: RarebirdRead Replies (1) of 118717
 
I expect PDG to appreciate at least 50% over the course of the next year. My reasoning is quite simple: 1)The Gold/XAU ratio is over 5. That means the mining stocks are dirt cheap relative to the POG. 2) At some point over the next 6-9 months, I expect the USD to resume its Bear Market and initiate another leg down. Perhaps this will occur when the Fed stops tightening.

I can give more reasons but it is not necessary. To take a phrase from Clinton, "it's the Gold/XAU Ratio, stupid."

That's an indicator you can take to the bank.

PS A good gold fund like America Century (or Fidelity Select Gold Fund) will do the trick too.
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