Van Eck Precious Metals and Oil Hotline
"The basic fundamentals for gold remain bullish. That has been the case for more than five full years now. If a geopolitical situation escalates – such as the Iranian nuclear program – gold could jump up to a new high for this bull cycle a lot faster than even most sector bulls expect. We believe the odds favor a test and likely breakout of that cycle high (between $725.00 and $730.00 an ounce) during the year ahead. We also expect to see gold make a run at the $1,000.00 level before the bull market comes to an end. Some of our more bullish peers are talking about gold topping $1,000.00 within a short period of time. For our part, we would be perfectly content to wait two to three years for such an historic breakout in gold to take place. That would represent a rally of a bit more than 50 percent from here. There will likely be plenty of mini rallies and dips along the way. If history is any judge, the sector bears will whine during every rally and cheerlead every correction/consolidation phase. In the end, the trend will decide who wins and who loses."(February 2, 2007)

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