The Bail-Out - By Bob Weir

If the U.S. $700 trillion, sorry billion, bail-out does not work, then the U.S. financial sector will remain under pressure, with possible dire consequences, at least for a while, for world economies. If such were to occur, there may be no safe havens, other than for gold, until stability returns. So, this scenario would be good for gold equities, including the juniors.

If the bail-out proceeds, then the U.S. deficit balloons, which will put increasing pressure on the U.S. dollar. A falling dollar likely results in higher inflation with a concomitant rising gold price. Again, gold stocks, including promising juniors, should do well.

Since exceeding US$1,000/oz. we had been neutral to negative on gold. Now, we return to our bullish stance, and recommend investors make