IF Recession THEN Gold ELSE Cash

Submitted by Eric Cheshier on Thu, 04/03/2008 - 17:30

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Financial News

Pretty simple formula Masters, let's not mess around now that Bernanke has spoken. Gold is back up over $900/oz. and it's wise to take a small position just to hedge your bets. 80% Cash is even a better idea. If Tyson can afford gold teeth, so can you and a lovely face tatoo. Let's review class.

Gold prices bounced back on the bullion market yesterday and today on renewed stockists demand on the back of higher global advices while silver advanced further on sustained industrial demand. Gold prices in New York firmed up on speculative demand following weakness of the US Dollar. Go figure.

The Masters like Price of Gold Yamana Gold Inc. (NYSE:AUY), Royal Gold, Inc. (NASDAQ:RGLD), and even the Godfather of mining, Rio Tinto (NYSE:RTP).

Yamana's shares have pulled back amid falling stock prices for a number of precious metal and natural resource companies.

But Gold is the classic inflation hedge play.

Here's the list of Gold stocks to play:

Ticker	Company name	Home Country	$ Price Jan.8	% Sales current yr. growth	%EPS current yr growth	%EPS next year growth	P/E current year	P/E next yr.
AGI-T	Alamos Gold Inc.	CA	6.57	38.5	188.9	327.9	75.4	17.6
ACO-N	Amcol Int'l	US	32.43	18.9	26.0	18.0	17.3	14.6
BW-N	Brush Engineered Materials	US	31.81	24.3	45.2	28.8	15.5	12.1
RIO-N	Cia Vale Do Rio Doce	BR	31.23	62.3	60.1	12.9	13.1	11.6
ELD-T	Eldorado Gold	CA	6.35	121.7	1383.3	111.8	42.6	20.1
EGU-T	European Goldfields	CA	6.24	45.5	560.1	26.7	31.5	24.9
FNX-T	FNX Mining Co.	CA	25.98	76.5	49.7	98.8	21.4	10.8
GFI-N	Gold Fields Ltd.	ZA	16.71	19.7	33.1	34.9	22.0	16.3
HMY-N	Harmony Gold	ZA	11.96	22.8	250.0	100.0	57.0	28.5
KMT-N	Kennametal Inc.	US	32.60	10.8	23.1	16.1	11.6	10.0
LIHR-Q	Lihir Gold Ltd.	AU	33.37	37.9	47.6	104.1	55.2	27.0
PAA-T	Pan American Silver	CA	36.99	16.7	57.5	47.3	30.7	20.9
OPYGY-Q	Polyus Gold	RU	45.50	6.4	37.4	29.3	43.6	33.7
RTP-N	Rio Tinto PLC	GB	394.10	14.9	5.7	40.4	16.8	12.0
RGLD-Q	Royal Gold Inc.	US	31.60	56.7	29.1	9.3	31.0	28.3
SLW-T	Silver Wheaton	CA	17.11	9.1	2.3	39.0	44.8	32.3
YRI-T	Yamana Gold Inc	CA	15.50	363.0	570.8	46.7	23.0	15.7