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As the U.S. dollar weakens, commodity prices have soared, and investing in gold has become very popular. Just ask the Chief Executive Officer of Barrick Gold (ABX), a recent addition to our Blue Chip Growth portfolio. Gregory Wilkins recently said that investors have a golden opportunity to invest in the bright metal due to rising commodity prices.

Barrick's business has been booming. The company earned over $1 billion in 2007 and had a record fourth quarter to close off the year. The good times aren't over by any means. Barrick Gold is not even hedging its exposure to the gold market as Mr. Wilkins and his management team believe the company's fundamentals are in place for a sustained rally.

We're simply in the midst of a perfect storm for investing in gold, as higher demand is faced with lowered production and supply. There are a number of gold mines that are older and have limited productive life left, and there have been very few new discoveries in the last several years. In addition, central banks around the world have drastically slowed down their open market sales of gold even as demand is rising. In addition to investment demand, the market for jewelry and other fabrication uses is growing. This has made gold even more precious.

Barrick Gold is now the largest gold producer in the world following its acquisition of competitor Placer Dome in 2006. The company produces over 8 million ounces of gold annually. In addition to gold, it's a major player in the copper market as well. ABX now has copper reserves of 6 billion pounds. The copper market is also seeing rising prices as supplies dwindle and global demand remains very strong. So far in 2008, copper prices have risen over 32% in global trading! Most analysts expect the climb to continue as a result of rising demand to replace and build infrastructure all around the world.

Bright Metal, Bright Future

As the U.S. economy nears a recession, the future simply shimmers for shares of Barrick Gold. The company has been diligent about replacing its gold production every year. Although primarily a North American producer, the company has begun to expand globally as the need to find new sources of gold has risen. They have the deepest project pipeline in the industry with three projects in the permit process and one under construction, as well as several in the exploration and discovery phase. The company is looking for partners to bid on the Sulchoi field in Russia when that property comes up for sale later this year. Their property in Tanzania has a more than 10 years of gold production left, with capacity in excess of 250,000 ounces a year, while the Dominican Republic project has over 20 years of production capability available at over one million ounces a year.

As the price of gold continues to rise, Barrick Gold will be a major beneficiary. The U.S. economy is uncertain right now with signs of rising inflation. Investors are seeking shelter in gold, and my Blue Chip Growth subscribers will profit from owning ABX. My powerful fundamental and quantitative indicators identify stocks like Barrick Gold that buck the trend and grow even in confused markets. My method for finding those stocks and sectors that are prospering regardless of the economic cycle can help you find the path to profits, even during times of market fluctuations. To see what other stocks have the same bright prospects as Barrick Gold, try a risk-free trial to Blue Chip Growth today. You get 6 months to take it for a test drive–if you're not happy, you get all your money back!

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