Anglo American (OTCPK:AAUKY) and the Rand (ZAR) have been two solid options for investors looking to dabble abroad. 2010 will most likely be remembered as the year where precious metals took off. A large part of Anglo American’s success can be attributed to the recent surge of Gold to record levels. Like the CAD and AUD, the ZAR is a currency driven by mineral speculation. The question one has to ask is whether Gold can keep this prolonged rally going? I personally believe this precious metal is in good position to keep these gains up well into the New Year.
Mining is key to South African wealth - bit.ly/g70QNV
There are a number of reasons as to why I am so bullish on bullion, the main being uncertainty about the dollar. Last night’s filibuster over the Federal budget for 2011 comes at a time when critics (at home and abroad) are concerned with the manner in which the Obama administration and Congress plan to address the growing US deficit. If this sentiment continues it would be good news for both Anglo and the ZAR. Historically Gold does well when the dollar is in a weakened state. If this proves to be the case, look for the luster of ZAR and AAUKY to attract wary investors.
Scenarion: Dollar Crash - bit.ly/g70QNV
HiddenLevers can help you find stocks based on where you see Gold and the Rand headed, among dozens of other economic trends. Or, if you are concerned with how your current portfolio would be affected by a weakening US dollar, HiddenLevers can help you understand how your investments would be affected in such a scenario. (subscription required)
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.