DavidSLane 2010 Predictions

Predicted by DavidSLane:

The Price of Gold Will Be:

Price of Gold
Date Price per Ounce $US
March 31, 2010
$ 1,330
June 30, 2010
$ 1,180
September 30, 2010
$ 1,120
December 31, 2010
$ 1,550

The DOW will close at:

Date DOW Close
March 31, 2010
June 30, 2010
September 30, 2010
December 31, 2010

My Top Stock Picks for 2010 are:






My Other Predictions for 2010:

Oil will hit a high around $85 a barrel by end of February and then come down to around $60 by summer and $55 by fall. I expect it will end 2010 around $75 a barrel.

Just like with my 2009 prediction, I still don’t see uranium doing anything is 2010. A global slowdown and continued credit contraction will constrain energy needs. Plus, continued dismantling of Russia’s nuclear arsenal will keep uranium supply strong.

The credit contraction, credit defaults (commercial real estate, consumer, etc), defaults across Europe (especially eastern Europe), high unemployment and constrained consumer spending will keep global growth down. But not out. We’re talking 0% to 1% growth in the US. Deflation will still rule, not inflation.

The US dollar will not make new highs as the US Fed tries to keep the US dollar weak. But the turmoil in Greece and Spain will smash the euro keeping a bid under the dollar.

The best currency place to be will be the Japanese yen. I expect the end of 2010 will be good for the Australian and Canadian currencies too.

Although I prefer gold/silver junior and mid-tier miners over all other asset classes, I think US treasuries could be a good buy in 2010 along with corporate high yield bonds. And utilities. Basically, the traditional high yielding, boring kind of investments.

I also don’t expect the Democrats to do that bad in the 2010 mid terms. They’ll lose some seats in congress, but they may surprise folks on how NOT bad it is. Focusing 2010 on jobs and the deficit will help the Democrats regain traction before the elections and the fact the Republicans will realize too late that they should have come up with alternate plans other than trying to stop the Democrats from doing anything. Plus, Republican infighting between the right and far right will split their votes, helping the Democrats skate on through. Although the market may be concerned about this at the beginning, in the end, the markets should like the result as the markets go up and  deficits go down during Democratic administrations over the past 100 years and this will be good for the US dollar in the long term.

Here are some links to other web sites I like:

Still no one better to read each week than John Maudlin

I also like www.goldtrends.net and Jim Sinclair’s www.jsmineset.com.

Full Disclosure:

Here’s how I did in 2009:

Pretty damn good.

I doubled my portfolio over the past 12 months.

And that was with a buy and hold strategy mostly.

Didn’t actively trade. Didn’t do margin. No futures. No options.

I gave up on margin, so I didn’t gain back as fast as I lost.

I dumped almost all of my uranium stocks in Nov. of 2008 and switched to gold and silver miners (the majority junior miners). I then dumped the rest of my uranium stocks at the usual May uranium high point in mid-May 2009. I sold out my Denison then at around $2.25 US (almost double its current price).  From a quick glance, outside of Pinetree, the gold and silver stocks (especially the juniors and mid-tier) did much, much better than their uranium brethren over the past 12 months and more.