Eric O's Favorite Gold Miners

I'm thinking general equities across the board, pretty much.  You could just buy the Dow or the S&P 500 and make money for a while here this year, I think.  Some easy ETF's for those are DIA and SPY.

I've got some XLB, which is an ETF of basic materials producers.  I think oil and oil companies will do well.  Easiest way is to just buy XLE or go more aggressive into oil sands producers like SU, CNQ, or CVE.  I think natural gas is getting close to a bottom, so I've been in and out of HGT lately, looking right now to get back in.

Just laid out my view on Main St.  I'm going to put it here as well, so that it's easier for me to find it again and refer back to it if necessary.

A direct question from a friend via private message moved me to clarify my thoughts about Santa's latest.  No reason it can't go on Main.  Here's a copy:

Truly, I think it is more of the same as what a lot of people have been saying for a while.  QE to infinity.  The only difference is that he gives us another thing to keep an eye on, something we can put a number on, namely decisions by the ISDA (basically the Big 5 Banks) as to whether something is a default or not.

At a 50 cents on the dollar payback on Greek debt, they say "no, it's not a default", thus protecting themselves.  In the meantime they must print money like crazy to keep everybody else from going belly up.  They don't want any more MF Globals out there.  Now Sinclair is saying that this week it will get to 30 cents on the dollar on Greek debt, and again the ISDA will say "no, it's not a default", thus protecting themselves again.  And more global money printing to keep everybody else from going belly up.  But Santa is saying that at some point, 20 cents, 10 cents, 0 cents?, they won't be able to say it's not a default anymore.  At that point, it's the Big 5 Banks that are in danger of going belly up, and at that point, money printing takes another quantum leap to the sky, in order to save those big banks.    Those Big Banks control the printing press at the Fed, and they'll do whatever it takes to save themselves.  

All this money printing, a lot of it now, and even more of it later, is good for PM's, good for miners, good for general equities across the board.  Those big drops we saw, like in 2008, and at some points here and there in 2011, come around whenever people begin to doubt whether they will print or not, or whether they are printing fast enough.  What Sinclair is saying that there can be no doubt that they will print whatever it takes.  Liquidity to the sky.  

​This ties in directly with what I posted on Main St over two weeks ago, and that's why I'm not really surprised by any of this.  Here's a copy of that:

I've shared this with some friends a couple of times in recent days on PM threads, but I see no reason not to put it here.  Go ahead and flame me all you want.  Tell me about all the Black Swans that are out there waiting to crush us to death.  Tell me about manipulation of the metals and the miners.  Tell me about how all the debt is no good and the Dow is going to 4000.  Tell me about how all this money printing is unconscionable, that they are secretly printing, and yet at the same time tell me that QE3 is not coming yet!  Folks here hate the idea that the markets will start to look better all year and help Obama get reelected.  That doesn't mean it's not happening.  Don't let your own sense of justice cloud your view of what is actually happening.   Take Bank of America for instance.  If there was justice in the world, it would go bankrupt.  Any objective look at it tells you that is bankrupt.  It aught to go to zero.  It deserves to go to zero, but it's going higher.  That's just the way it is.  Get used to it.  You can't invest based on what deserves to happen.  You have to invest on what is happening.

Here's a copy of my PM from Friday night.  Fire away!!

I'm so bullish right now I can hardly sit still.  I haven't felt this way since March '09.

All through the fall, we've been worrying about Europe, selling shit and buying dollars out of fear the world is going to stop spinning.  In the meantime, TPTB have made it clear they are going to print whatever it takes.  Today, all of Europe got downgraded.  Supposed to be armageddon right?  The market yawned.  They've been selling the rumor for months.  It's time to buy the news.

I called a bottom in gold on New Years Eve out on Main, and I'm sticking with that.  Not only am I bullish on gold, but on silver, miners, Dow and S & P as well.  All this printed up money from the last three years is going to find some velocity and go to work.  We'll have a real sweet spot through most of 2012 where everything goes up before folks get worried about inflation or bond rates rising.  I'm loading up.

Just my opinion, of course.  Worth every penny you paid for it.  

Just can't get excited about anything over $5B either.  Too boring.  Bye bye, AEM and NGD.

Too big and they are too mild for me.  Too small and they are too wild for me.  We all need to find our own "niche".

Kaminak will be kicking off a $17M, 50,000 meter drilling program soon on all their best targets.  I picked up some KAM recently at $2.00, so I'm feeling pretty good about this.

http://finance.yahoo.com/news/Kaminak-Scheduled-Begin-ccn-1567424579.htm...

A question via private message reminded me that maybe it's a good time to list out my top holdings again.  Top Ten, in order, are:

AuRico, Primero, First Majestic, Endeavour, Richmont, Wesdome, Detour, Claude, Kirkland Lake, and Golden Band.

Primero has been the laggard of the bunch.  Claude and Golden Band not exactly lighting the world on fire either.

Wesdome, First Majestic, and AuRico have been leading the pack so far YTD.