As far as I am concerned, Goldcorp remains the number one buy in the gold sector. The company is well run, it has no debt and no hedges. It has low costs and is set to expand its production and reserves during the years ahead. If I could only own one gold stock – it would be Goldcorp.

But to diversify your holdings I would buy some other companies also that give different types of metals exposure.

IAG is a growth company. It has no debt or hedges. That will give it leverage in the next up leg of the gold bull cycle.

NXG is a growth company. As long as the price of copper remains in a bull market, NXG should do quite well.

Royal Gold (RGLD) is a low cost royalty company. It has a lot of leverage to gold – without too much risk.

Gold in particular dominated the thinking of everyone from Emperors and Kings to merchants and rich investors, starting at least 4000 years ago. That held true until very recent times, when Governments formed central banks and began to issue paper Money as their preferred store of value and means of trade.

Wise men always knew that Governments would begin to print too much Money in an effort to win popularity with their subjects. Governments also knew inflation would be the inevitable result of what they called “Fiat Money.” That is money which is accepted as legal tender simply because the Government says it is. Unlike Gold, which earned its way as Money because it was scarce and difficult to produce, Paper Money had no real limit. Germany proved that after World War One. They had been ordered to pay reparations to the Allies. When the burden became too great, they simply printed paper Money to satisfy these claims. But they ran the presses so fast and boosted the numbers on the bills so high that prices exploded. Workers demanded that they be paid daily. Wives came to pick up the pay and spend it before it depreciated more. But once again Gold seems to be responding to worldwide excesses in Money Creation. I now see Gold as going over $700 in the next 3 to 7 months.