“ . . . I have to conclude that gold is on the threshold of doing much better – and that as well as resource stocks have done, they remain in the earliest stages of a market that has arguably yet to begin,” wrote Robert Bishop in his end-of-summer Gold Mining Stock Report.

Gold prices fell from late May through mid-summer, as the stock market and the US dollar moved up. As stocks leveled off in July, the dollar dipped, then rebounded. Gold prices didn’t react the way they typically do to the equity markets, but they did fluctuate significantly opposite the dollar’s zigs and zags, reported Brien Lundin in his September issue of Gold Newsletter. As August approached, both stocks and the dollar moved solidly upward, and gold moved along with them. “Moreover, the gold price turned up not only in dollars, but in yen, euros, Swiss francs – every major currency across the board,” said Lundin.

Despite the late-summer upward trend in the dollar, some pundits warn that the dollar is poised to move lower, in part because of ballooning U.S. budget and trade deficits trigged by the war in Iraq and ongoing military expenses. “This will continue to be bullish for the foreign currency markets,” according to Pamela Aden, writing in the September issue of The Aden Forecast. And a bullish foreign currency market is bullish for gold, says Aden.

In addition to the weak dollar and soaring debt and deficits, gold stocks stand to benefit from continued low interest rates and a favorable supply-and-demand scenario in the gold commodities market. Moreover, says Aden, gold rises during uncertain times – and these are uncertain times, economically and politically, both in the U.S. and abroad.

Favorites

Mary Ann Aden/Pamela Aden, The Aden Forecast

• Newmont Mining (NEM)
“.... is the largest gold mining company and it should be in everyone’s portfolio.”
• Coeur d’Alene (CDE)
• GoldCorp (GG)
• Placer Dome (PDG)
• Barrick Gold (ABX)

Brien Lundin, Gold Newsletter

• Apollo Gold Corp. (APG.T)
“Apollo has suffered a significant set-back in its share price, creating what I believe is a prime buying opportunity.”
• NovaGold Resources (NRI.T)
“ . . . NovaGold is a ‘hold and forget’ stock, as the price will ratchet inevitably higher as Placer Dome develops the Donlin Creek mine over the next few years.”
• Northern Dynasty (NDM.TSXV)
“Northern Dynasty is shaping up as a major success story with far more upside to it.”
• Gammon Lake (GAM.T)
“While the precise timing and degree are unknowable, I’m confident this stock will be trading significantly higher by the end of the year.”

Ian McAvity, Deliberations on World Markets

• Newmont Mining (NEM)
“ . . . having emerged as the unquestioned Number One choice in the eyes of North American investors.”
• Placer Dome (PDG)
• Barrick Gold (ABX)

James Winston, Winston’s OnlineInvestorsNews

• Endeavour Mining Capital Corp. (EDV, TSXV)
“I believe in the very near future Endeavour shares will be trading at a premium to their net asset value.”

Robert Bishop, Gold Mining Stock Report

• Nevsun (NSU.T)
“Exploration of the company’s 90% owned Bisha project is set to resume around October 1, and when it does, my expectation is that the upcoming exploration season is likely to be even more exciting than this year’s first-pass discovery phase.”
• Almaden (AMM.T)
• Orezone (ORZ.T)
• Manhattan Minerals (MAN.T)
• Miramar (MAE.T)