Peter Brimelow: Dines Still Glowing About Uranium
Source: Dow Jones (11/5/07)
Dines concludes: "Uranium action this year thus appears to be an example of an unusual 'Major' consolidation, while the uranium market tries to figure out which path to take. We must remain stoically calm, and not allow our emotions to whip us back and forth..."
Dines, the octogenarian editor of The Dines Letter, was our Investment Letter Editor of the Year in 2006.
. . .The Dines Letter is up 28.2% over the past 12 months vs. 15.1% for the dividend-reinvested Dow Jones Wilshire 5000, according to the Hulbert Financial Digest. And over the past 10 years, Dines is up an even more impressive 19.8% annualized vs. 7.4% for the total-return DJ Wilshire.
With spot gold back above $800 for the first time since 1980, Dines like many gold bugs could be pardoned for thinking that the conditions of his youth have returned.
Indeed, Dines writes in his last letter, published in late October: "We would be very surprised if the gold price did not blast right through the old highs, and we reaffirm our old targets for gold of $3,000 to $5,000 an ounce (Plus silver over $100 an ounce) ... gold is not merely a colorful trinket but a monetary asset, and when mass fear strikes at the heart of paper money, the stampede to gold will be awesome."
What has really distinguished Dines in recent years, however, has been his advocacy of uranium. He argues that, ultimately, the only energy choice is between coal (resulting in global warming) and uranium...
He concludes: "Uranium action this year thus appears to be an example of an unusual "Major" consolidation, while the uranium market tries to figure out which path to take. We must remain stoically calm, and not allow our emotions to whip us back and forth ... Although stock market trends could change and force us to completely reassess the situation, events are proceeding as though an important bottom is behind us."