2007 and Beyond

Well 2006 was definitely an interesting year economically, but I believe that 2007 will sure be a lot of fun if you are on the winning side. In the next couple of weeks or so, I will be doing an overhaul of my stocks.

I have a lot of money tied up in GLD the gold etf. I am starting to dislike this very much. First off, you have to pay 3 times more tax on profits that are precious metal related compared to other stocks.

I plan to get rid of Dune Energy. I still REALLY like this company in the long run but let me explain to you why I am getting rid of it. I still hold to my prediction of oil going to $100/barrel and beyond. This won't happen before what I believe to be a drop of the price of oil down to around $40/barrel. As you know, I am know millionaire. If I had sufficient funds I would just be able to stick it out. That's not the case. I have to be more ticky-tacky with my investments.

Last, but not least, I am considering removing Uranium Resources. This has nothing to do with me feeling bearish on Uranium. In fact I am quite bullish on the "yellow cakes." My problem lies with the management of this company. They make me nervous, and I am not sure that they are shareholder friendly. At this point, I haven't made a final decision, but I will keep you informed.

With all this liquidated cash from the above mentioned portfolio decisions, I'm sure that you are wondering what my plans are. Let me start with a few predictions for 2007. I believe base metals have peaked in value and are on there way down. This is open for debate. My reasoning has to do with the coming recession in 2007. With recession comes decreases in manufactured goods. Less manufactured goods equals less of a demand for base metals. The counter argument has to do with China, India and other developing countries in Asia. There increased industrialization results in a higher demand for base metals. You have to remember that I am considering 2007 here. I believe that in the coming years there will be a huge demand by Asia for base metals, but it will take them a little while to get on board.

I have told you about my thoughts on oil so I won't go into it. Remember it's still a great long term investment. OPEC has announced recently that we have hit peak oil. That mixed with growing demand has strong implications of a higher price in oil. I don't like it when the public gets to knowledgeable on a subject. As the old saying goes, "if you get too many people on one side of the canoe the canoe will tip." That why I see some coming lows in the price of oil. This will also be true for the early part of 2007 regarding the U.S. dollar. That's a story for another day.

My next to predictions are two that I have said for a long time and are something I feel quite strong about. Here me now, for 2007, uranium will hit $100/pound and gold and silver will reach record highs. Now I am really going to put my money where my mouth is. I'm not going to get into the specifics of why I feel the way precious metals and uranium because I've already told you. You can refer to previous posts if you don't know. I will be putting much more weight on my portfolio regarding gold/silver mining and uranium mining. I haven't made any final decisions, but a few companies I am considering strongly are Paladin Resources, Impact Silver, Great Panther Resources, and Jinshan Gold Mines. I will keep you posted with my further action regarding these companies and future actions with my portfolio as well as more detailed information regarding the specifics of these companies. Feel free to check them out for yourselves. I always encourage research and personal due dilligence.