IamGold (IAG): 'Buy' for Real Wealth

"My indicators suggest the next leg down in the dollar and the next leg up in gold has begun," says Larry Edelson. In Real Wealth he eyes a new buy idea -- IamGold (NYSE: IAM).

"The financial crisis may have passed in the private sector — but only to soon re-emerge in the public sector as Washington begins to drown in a nightmare of unpayable debts.

So while inflation is not yet obvious to everyone, what is becoming abundantly obvious is that Washington is brok beyond repair. This is why the dollar is falling.

"And that is why savvy investors all over the world are beginning to lose confidence in Washington and our currency ... and why it’s all leading to a massive renewed bull market in natural resources, especially gold.

"IamGold is a bi-level gold producer I’ve been following for some time now and I believe with the next leg up in gold, the company is poised to hit the big time. 

"The company has more than 1 million ounces of annual gold production from eight mines on three continents, in West Africa, the Guiana Shield of South America and Canada. And IAG is aggressively in expansion mode.

"With 12.4 million ounces of proven and probable gold and another 26.4 million of potential gold resources, I figure the company’s assets are worth as much as $39 billion.

"However, the company’s market cap is a mere 1/8th of that at about $5.3 billion. That market cap is sure to grow in a raging gold bull market.

"Moreover, the share price has recently thrust higher through chart resistance at the $14 level, and the chart to the right shows that the next cycle push higher should now be well underway, with a rising projection into late February of next year."