"Is it time to buy gold?" was the headline of an article I did in September 2004. At that time gold was trading around the low $400 area and I recommended buying with a target of $700 to $1250 within approximately 5 years. Since the low end of my estimate has been met within 3 years, it's time to review.

Long term inflation is still hard at work with likely some nasty surprises still in store for us. Expect major food price inflation over the next 3 years, for a variety of reasons. Energy prices keep moving up with oil probably headed for around $100 per barrel. There has never been a greater time of need for gold in your holdings than now. There are just way too many things that could go wrong.

My new targets for gold are $1500 to $2000 by 2010 to 2011. Gold is currently trading at $650 to $675.

Best ways to buy gold at this time:

1. U.S. Coins: $2.50, $5, $10 Indians certified AU-58. Also $20 St. Gaudens certified MS-63.
2. U.S. 1 oz. gold Eagles.
3. Gold Tracking Stock (symbol GLD). Price reflects each share is 1/10 oz; gold is on deposit for all stock issued.

If you prefer silver, buy the following:

1. U.S. Silver Dollars (1878 - 1935). All grades are acceptable.
2. U.S. 1 oz silver Eagles
3. Silver Tracking Stock (symbol SLV). Price reflects each share is 10 oz.; silver is on deposit for all stock issued.

July 2007