BMO's Coxe Forecasts Four-Digit Gold

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In his latest issue of Basic Points, BMO Capital Markets Global Portfolio Strategist Don Coxe stressed that the gold ETF and precious metals shares "should be your primary emphasis on new money investments in commodity stocks."Coxe also noted that "Gold's recent rally is the real deal.

BMO Capital Markets Global Portfolio Strategist Don Coxe has advised clients that "gold's price is ultimately headed for quadruple-digits in dollar terms. In his latest issue of Basic Points, Coxe stressed that the gold ETF and precious metals shares "should be your primary emphasis on new money investments in commodity stocks."

Coxe believes that "Gold's recent rally is the real deal. The dollar keeps falling, and central bankers who had been readying themselves to head off food and fuel inflation are hamstrung by the risk of a global recession because of damage caused to the financial systems by escapees from the computer systems and software shops on Jurassic Park Avenue."

"We also believe that investors will respond to the outbreak of inflation by including commodity stocks in investment portfolios as inflation hedges. Thereafter, the stocks will trade not just on earnings, but on their ability to reduce endogenous portfolio risk."

Coxe is bullish on commodities over the next five years, foreseeing only one major setback, the possibility that a U.S. recession could trigger a global recession.

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