With the dollar not worth much more than wallpaper in many parts of the world, skyrocketing oil prices and ever rising commodity prices, it's tough to deny that inflation's at hand. Especially in the US markets, where the majority of our consumer goods are imported.
With inflation comes a flight to quality and precious metals which hold their value, and since we've already been in a great bull run on gold, I expect that trend to continue.
Rather than stashing bullion under the bed, I prefer to play the miners. Goldcorp is an integrated miner which controls its whole chain from digging it out of the ground to processing into a salable form. It's showed years of solid profitability and strong growth and while it's P/E is slightly high for the industry, it's well worth the price.
They also hold proven reserves in silver and several other industrial metals, so while gold is their primary business, they do have sidelines in the off chance gold prices go soft. Still, I'd expect the bull run to continue and view GG as an excellent long term play.
$35.06 (11/08/07)
