Gold Bugs Ready to Rock

Neal Ryan, director of economic research at New Orleans-based coin dealer Blanchard, sees a high of about $825 to $850 an ounce for gold, a floor of $615 and an average price of $725.

The rally will be driven by Middle Eastern problems, as well as burgeoning inflation and a weak dollar. He recommends holding physical bullion rather than stocks.

"With stocks you have a proxy," for gold, says Ryan. "When you look at a mining stock vs. physical [metal], you have to look at a variety of other factors," such as costs, management and operational risk.

He advocates precious-metals holdings of no more than 5% for most investors.

Blanchard, which is currently long physical gold, trades bullion for its own account as well as for its clients.