This week’s letter is short. As we have mentioned in the past we believe that oil will go to $150 per barrel this year and we believe that this will be promulgated by a possible change of regime in Saudi Arabia and other oil-producing states in the Middle East and Latin America.
Accordingly, we are taking profits and closing our buy recommendation on the U.S. and Canadian markets at this time. We continue to recommend Japan and Australia because we do not want to sell Japan during the earthquake aftermath; we will wait for a bounce in the stock markets in this region.
We continue to be very bullish on gold and oil and we believe that holding these two assets in commodity form or in the shares of fast-growing or high-yielding gold or oil producers is the best approach. We believe that gold will exceed $1600/ ounce in the near future and will move higher over the long-term. Caveat: Be careful to avoid oil producers who have a large proportion of their production from the Middle East.
Comex Gold
Nymex Crude Oil
|
Investment |
Date Recommended |
Appreciation/Depreciation in U.S. Dollars |
|
Commodities |
|
|
|
Gold |
6/25/2002 |
336.8% |
|
Oil |
2/11/2009 |
179.9% |
|
|
|
|
|
Currencies Singapore Dollar |
9/13/2010 |
5.4% |
|
Thai Baht |
9/13/2010 |
6.5% |
|
Canadian Dollar |
9/13/2010 |
5.6% |
|
Swiss Franc |
9/13/2010 |
8.4% |
|
Brazilian Real |
9/13/2010 |
2.7% |
|
Chinese Yuan |
9/13/2010 |
2.7% |
|
Australian Dollar |
9/13/2010 |
8.3% |
|
Countries |
|
|
|
U.S. (Sold) |
9/09/2010 |
18.1% |
|
Colombia (half of our original position) |
9/13/2010 |
-0.6% |
|
Canada (Sold) |
12/16/2010 |
7.9% |
|
Australia |
02/15/2011 |
-4.0% |
|
Japan |
02/15/2011 |
-4.6% |
Please note that we are selling Canada and the U.S. and closing our recommendations on these two countries this week on our recommended list.
Please click the link below to see our current and closed recommendations:
