Gold Bugs Ready to Rock

His other picks include miners Northern Orion (NTO Quote), Meridian Gold (MDG Quote) and Randgold Resources (GOLD Quote).

"Look for companies that have high return on capital," he says.

At the end of September, the World Precious Minerals Fund held stock of Northern Orion, Meridian and Rangold. A spokesman for the company wouldn't comment on the Newmont LEAPS.

Jeff Christian, managing director at New York-based specialty consulting firm CPM Group, says many investors see a world full of economic uncertainty, which will help boost gold prices to a peak of $750 during the first quarter.

Christian was the only person polled by TheStreet.com who also took part in the 2006 LBMA survey. Last year, he was the most bearish of the lot, with an average price forecast of $479. For 2007 he's clearly more bullish, at least for a while.

"There is a lot of concern that the dollar will just fall and fall and fall," says Christian. But "over the year that view will shift," with investors growing more sanguine, which should lower the risk premium for gold.

After a spring spike he sees prices for gold drifting down to $500 by year-end, with a full-year average of $600.

Clients should be "long commodities and [gold mining] equities. Eventually, though, investors will want to rotate out of out of commodities while staying in the equities, adds Christian.