A Golden Start to 2006-Indices close up 6%!

I write this at market close, with the ^xau closing up a whopping 6.3% for the day! ASA closed up almost 8%!

Gold is in good shape...The market is portending many handsome gains in the months and probably years to come. Fundamentals couldn't be stronger for the Stockholders-demand is high (from developing nations like China and India specially), Companies are being run efficiently (the managements are conservative and cost efficient-remembering the catastrophe of the late 90's and 2000) and Exploration hasn't picked up noticeably to pose any threat to the prices. A recipe for glittering gains.

Interestingly, Crude stocks also shot up today, about 5%. Both black and yellow gold are in secular bull markets. Other bull markets are in Utilities, Real Estate (the housing bubble is already accounted for by the REIT managers!).

Here's to a great start for year 2006!

Cheers,

Subscribe now to The Wall Street Journal and get up to 8 weeks FREE

The Prudent Speculator -- Ranked #1 by Hulbert for 10, 15 and 20 year performance...Click Here!

If you subscribe to the Wall Street Journal or the Prudent Speculator(a Forbes.com publication) using the links above, I get a commission.

Sanjay John G.