A Comment -- General Comments From an Expert (A Commentary)

Gold : - Overall gold remains strong. Best way to track is to watch the physical market that trades overseas overnight and if the premium to physical bullion goes to a premium or discount. A discount means a lot of physical bullion is being sold. Market is climbing a wall of worry, which is what you want to see. Looking for $735 this summer.

Base Metals: - Current market conditions will soften economies globally. Base metals are very sensitive to the economies. The only base metal he likes, outside of uranium, is cobalt.

Top picks (DD-N) and (DE-N) are based on 2 major emerging trends. 1) Increasing wealth in the Far East will see a switch in dietary habits from rice to protein. Demand for soybeans will grow like crazy. 2) Growth of ethanol demand will require a major investment by farmers in new equipment.

Ibiden - A ceramic packaging company. A really exciting part of their business is the diesel particulate filter business. (Ed. - Could not find it listed on exchanges.)

Gold: - Feels there will be a lot more international buying in the next while and gold will exceed $700 this year and $1000 in the next few years.

Gold: - With my name costs going up, Gold stocks have generally lagged the commodity. For new money, he would prefer the ETF’s (GLD-N) instead of gold mines.

Natural Gas: - Heading into the shoulder season, where there is weakness going from winter to spring. Depending on how hot a summer we have and what we end up with in storage, he could see gas prices at $8.00 and could go higher next winter as it gets cold again.

Gold – Overshot in the spring of last year when it went up to $700. That was full of buy a correction, but since then it is very much in a horizontal trading range, which is a good thing to have. It is about ready to start moving again and there is a good chance it will go back to $700 and maybe even higher.

Financial Services - Environment for banks right now is one of the most stable you can find. Not a lot of pressure for rates or from credit conditions. Doesn't see a big correction coming for financials. Expecting high single-digit plus good dividend yield.

First Capital Realty five-year 5.08% bonds. This is a call on the REIT bond market. There is still some value on a very tight credit spread market.

30-year government of Canada bond. Over the long term, there is a sustainable rate. Real rates are going to be low and inflation will be nonexistent.

Interest rates: - Going to go a lot higher. Gold has gone higher which means the paper you are carrying around in your pocket is not worth as much as it was 2 or 3 years ago. How do you get back so that money is worth more than “ stuff”? Rates have to be hiked to such a point that it gets more value.

Silver - The chart shows a semi triangle. If it breaks out through the mid-$14’s it's a pretty strong sign. It has beautiful support. Watch for the breakout and then buy yourself a silver stock. If silver breaks out, gold will follow.

Uranium _- It has been on a tear and looks like it wants to go further. Would be inclined to go with Uranium Participation (U-T), a purer play in uranium. A high-risk play.

His pick of government 10-year bonds has not been as good an investment as he had hoped. In the near term, interest rates may be levelling off.